Profile: Reliance Steel and Aluminum Co (RS.N)
22 May 2013
Reliance Steel & Aluminum Co. (Reliance), incorporated on February 03, 1939, is the metals service center company in North America (United States and Canada). The Company’s network of metals service centers operates more than 240 locations in 38 states in the United States and in 10 other countries (Australia, Belgium, Canada, China, Malaysia, Mexico, Singapore, South Korea, the United Arab Emirates and the United Kingdom). Through this network, the Company provides metals processing services and distribute a full line of more than 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and specialty steel products, to more than 125,000 customers in a range of industries. Many of its metals service centers process and distribute only specialty metals. The Company delivers products from facilities located across the United States and Canada, and have grown its international presence to support the globalization of its customers, giving the Company a product, customer and geographic diversification. On July 6, 2012, the Company acquired substantially all of the assets of Airport Metals (Australia) Pty Ltd., a subsidiary of Samuel Son & Co., Limited, through its newly-formed subsidiary Bralco Metals (Australia) Pty Ltd. (Airport Metals). On October 1, 2012, it acquired all the limited liability company interests of Sunbelt Steel Texas, LLC, and through its wholly owned subsidiary, Feralloy Corporation, it acquired GH Metal Solutions, Inc. In April 2013, the Company acquired Metals USA Holdings Corp.
Effective October 1, 2012, through its wholly owned subsidiary Feralloy Corporation (Feralloy), the Company acquired all the capital stock of GH Metal Solutions, Inc. (formerly known as The Gas House, Inc.) (GH), a value added processor and fabricator of carbon steel products, that will allow Feralloy to better serve the increasing demands of its diverse customer base. Effective April, 27, 2012, through its wholly owned subsidiary Precision Strip, Inc. (PSI), the Company acquired the assets of the Worthington Steel Vonore, Tennessee plant, a processing facility owned by Worthington Industries, Inc. Effective April 3, 2012, the Company acquired all thelimited liability company interests of National Specialty Alloys, LLC (NSA), a global specialty alloy processor and distributor of stainless steel and nickel alloy bars and shapes, headquartered in Houston, Texas. Effective February 1, 2012, through its wholly owned subsidiary Diamond Manufacturing Company, the Company acquired McKey Perforating Co., Inc. (McKey), headquartered in New Berlin, Wisconsin and its subsidiary, McKey Perforated Products Co., Inc., located in Manchester, Tennessee. As of December 31, 2012, the Company maintained more than 240 metals service center processing and distribution facilities in 38 states in the United States and in ten other countries, and its corporate headquarters. All of its service center facilities are in condition and are adequate for its existing operations. These facilities generally operate at about 50-60% of capacity based upon a 24-hour seven-day week, with each location averaging about two shifts operating at full capacity for a five-day work week.
The Company’s customers are manufacturers and end-users in the general manufacturing, non-residential construction, transportation (rail, truck trailer and shipbuilding), aerospace, energy, electronics and semiconductor fabrication and related industries. During the year ended December 31, 2012, the Company’s metals service centers wrote and delivered over 5,153,000 orders. During 2012, it handled approximately 5,153,000 transactions in total or 20,500 transactions per business day. During 2012, Its flat-rolled carbon steel products (i.e., hot-rolled, cold-rolled and galvanized steel sheet and coil) accounted for only 11% of its sales. For sheet and coil products, the Company purchases coiled metal from primary producers in the form of a continuous sheet, typically 36 to 60 inches wide, between .015 and .25 inches thick, and rolled into 3- to 20-ton coils.
Reliance Steel and Aluminum Co
Suite 5100, 350 South Grand Aven
LOS ANGELES CA 90071