Reliance, Inc. Successfully Concludes Acquisition of American Alloy Steel, Inc.

Reliance, Inc. (NYSE: RS) has formally declared the finalization of its acquisition of all remaining equity stakes and associated real estate assets of American Alloy Steel, Inc. (“American Alloy”), effective as of April 1, 2024. Established in 1971 and headquartered in Houston, Texas, American Alloy has established itself as a significant distributor specializing in carbon and alloy steel plate and round bar, with a particular emphasis on pressure vessel quality (PVQ) materials. This acquisition marks a pivotal moment for Reliance as it bolsters its value-added processing and fabrication capabilities while expanding its range of specialty carbon steel plate products. This strategic maneuver resonates with Reliance's overarching acquisition blueprint, which prioritizes the assimilation of immediately accretive companies that boast robust management teams. It is noteworthy that the existing personnel at American Alloy, encompassing its management cadre, will persist in their roles post-acquisition. American Alloy reported net sales of approximately $310 million for the twelve-month period culminating on December 31, 2023. As for the specific terms and financial intricacies of the acquisition, they remain undisclosed at present.

Established in 1939, Reliance, Inc. (NYSE: RS) stands as a premier global provider of diversified metal solutions and holds the distinction of being the largest metals service center company across North America. Operating through an extensive network comprising over 315 locations spread across 40 states within the United States and 12 countries internationally, Reliance delivers value-added metals processing services and distributes a comprehensive portfolio of over 100,000 metal products to a vast customer base exceeding 125,000 across diverse industries. Emphasizing agility and efficiency, Reliance specializes in handling small orders with rapid turnaround times while offering value-added processing services. Notably, in the fiscal year 2023, Reliance achieved an average order size of $3,210, with approximately 51% of orders incorporating value-added processing, and around 40% of orders being fulfilled within a 24-hour timeframe.

American Alloy Steel (AAS) made history as the pioneer service center to inventory Pressure Vessel Quality (PVQ) carbon and alloy steel plate. By prioritizing customer requirements and ensuring a steadfast commitment to quality, which includes providing 100% traceability on all Mill Test Reports for every item in stock, AAS experienced significant growth. Presently, AAS operates six stocking locations spread across the United States and Canada, boasting over 500,000 square feet of warehouse space situated on approximately 50 acres of land. In response to the global market demand, AAS has extended its physical presence into the Caribbean, Mexico, Central, and South America. With a workforce that has burgeoned from just a few employees to over 200 individuals today, AAS stands as a premier service center catering to a wide array of industries. These include but are not limited to refining/energy, power/utility, mining/aggregate, offshore/drilling, shipbuilding/vessel repair, and various other related sectors.