Olympic Steel Inc. (Nasdaq: ZEUS), a leading national metals
service center, today announced that it has acquired the assets of
McCullough Industries, Inc. The all-cash purchase closed on Jan. 2, 2019
and is immediately accretive. Terms were not disclosed. This represents
Olympic Steel's second strategic acquisition in the past nine months.
McCullough Industries, located in Kenton, Ohio, manufactures and sells
branded self-dumping hoppers used in a variety of industrial
applications. McCullough's products are primarily sold through
industrial distributors and catalogues.
"The McCullough acquisition marks our entry into manufacturing and
marketing metal-intensive branded products, which is a key element to
our long-term growth strategy," said Richard T. Marabito, Olympic Steel
Chief Executive Officer. "Vertical integration into manufacturing metal
products allows us to utilize our existing assets and expertise to more
consistently capture higher profit from the point of raw material
purchase through the ultimate sale to the end customer."
McCullough and Wright branded containers are recognized nationally for
their durability and performance. Constructed from carbon and stainless
steel, the hoppers are produced in a variety of configurations. Easily
transported, they are used for storing, handling, recycling and
transporting materials used in construction, food service, and
landscaping applications. The self-dumping hoppers can also be fitted
with feeding devices and integrated into manufacturing processes and
assembly lines for scrap and liquid waste collection.
"We are pleased that Stephen McCullough has entrusted Olympic Steel to
build on the success and values of the Company founded in 1965 by his
father Wright McCullough," Marabito said. "We look forward to
synergistically adding purchasing, metal processing and logistical
advantages provided by our service center platform to enhance the
already strong financial performance of the business."
The products will continue to be manufactured in Kenton, Ohio by the
existing workforce. In conjunction with the acquisition, Olympic Steel
veteran Joseph Casey has been named General Manager - McCullough
Industries. Casey began his career with Olympic Steel in 2012 at the
Integrity Stainless Division, and has progressed through several
positions with increasing responsibility including Inventory Control
Supervisor, Service/Scheduling Manager and Plant/Production Manager.
Casey is a certified Lean Six Sigma Black Belt, and in 2017, he was
promoted to his most recent position of Purchasing Manager.
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are typically identified by words or
phrases such as "may," "will," "anticipate," "should," "intend,"
"expect," "believe," "estimate," "project," "plan," "potential," and
"continue," as well as the negative of these terms or similar
expressions. Such forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
materially from those implied by such statements. Readers are cautioned
not to place undue reliance on these forward-looking statements. Such
risks and uncertainties include, but are not limited to: our ability to
successfully integrate McCullough Industries into our business and risks
inherent with the McCullough Industries acquisition in the achievement
of expected results, including whether the acquisition will be accretive
and within the expected timeframe. We undertake no obligation to
publicly release any revisions to any forward-looking statements or to
otherwise update any forward-looking statements whether as a result of
new information or to reflect events, circumstances or any other
unanticipated developments arising after the date on which such
statements are made. A further list and description of risks,
uncertainties and other factors can be found in our Annual Report on
Form 10-K for the year ended December 31, 2017 and in our reports on
Forms 10-Q and 8-K.
About Olympic Steel
Founded in 1954, Olympic Steel is a leading U.S. metals service center
focused on the direct sale of processed carbon, coated and stainless
flat-rolled sheet, coil and plate steel, aluminum, tin plate, and
metal-intensive branded products. The Company's CTI subsidiary is a
leading distributor of steel tubing, bar, pipe, valves and fittings, and
fabricates pressure parts for the electric utility industry.
Headquartered in Cleveland, Ohio, Olympic Steel operates from 32
facilities in North America.
For additional information, please visit the Company's website at www.olysteel.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20190102005578/en/
Matthew J. Dennis, CFA
Olympic Steel Investor Relations
Olympic VP of Strategic Development