Reliance Steel & Aluminum Co. (RS) announced an agreement to purchase Fry Steel Company’s outstanding capital stock—a move consistent with its high-margin business consolidation strategy.
RS’s sights are set on acquiring successful companies in niche product spaces as part of a growth strategy predicated on diversification. Fry Steel, California-based general line and long bar distributor, also cuts over 8,000 types and conditions of long bar products, including alloy, aluminum, stainless, brass and bronze.
The deal is expected to close early next year and is still subject to regulatory approval and customary closing conditions.
Los Angeles-based RS is one of North America’s largest metals service center companies with 300 locations, in addition to a presence in 13 countries outside the US. Its products line contains over 100,000 metal products it supplies to over 125,000 customers. In 2018, its average order size was $2,130.