Olympic Steel, a national metals service center, acquired all outstanding shares of Metal-Fab. Olympic Steel also increased the size of its asset-based revolving credit facility from $475 million to $625 million. According to an 8K filed with the SEC, Bank of America is the agent for the revolving credit facility.
Olympic Steel, a national metals service center, acquired all outstanding shares of Metal-Fab. The purchase is expected to be immediately accretive.
Metal-Fab was founded in 1958 and operates from two warehousing and fabrication facilities in Wichita, KS. The business manufactures venting and filtration products for residential, commercial and industrial applications – products constructed largely of coated carbon and stainless steel. The business will continue to operate as Metal-Fab, an Olympic Steel company, led by Mark Ohm, president, and his experienced management team.
“We are thrilled to welcome the Metal-Fab team to Olympic Steel, as we continue to deliver on our strategy to diversify and grow in higher-return products and services that are expected to reduce earnings volatility and increase sales and profit returns,” Richard T. Marabito, CEO of Olympic Steel, said. “Metal-Fab’s consistent earnings model has proven recession-resistant and is a perfect strategic fit for Olympic Steel. Metal-Fab’s manufacturing expertise and catalog of products are an excellent complement to our growing portfolio of metal-intensive end-use products. We are excited to broaden our product offerings, manufacturing capabilities and geographic reach with this acquisition.”
“Metal-Fab is a well-run organization with more than 60 years of experience, an established reputation for quality and a history of consistent double-digit annual EBITDA margins. It provides us with a solid platform for accelerating growth in two target market segments – carbon coated and stainless steel,” Andrew Greiff, president and chief operating officer, said. “Metal-Fab’s values and operating principles are well-aligned to our culture and practices, and we expect to capitalize on a number of operational and commercial synergies that will benefit both the Metal-Fab product lines and Olympic Steel.”
Olympic Steel also increased the size of its asset-based revolving credit facility from $475 million to $625 million. Following the $131 million acquisition of Metal-Fab, Olympic Steel’s total debt under the revolving credit facility is approximately $297 million, with availability of approximately $280 million, leaving significant capital to continue its diversification strategy through investments in additional acquisitions, new capacity and increased efficiency through automation to deliver shareholder value. According to an 8K filed with the SEC, Bank of America is the agent for the revolving credit facility.
