Metals processor and distributor Ryerson and metals service center Olympic Steel announced Tuesday that they plan to merge into what would become North America’s second-largest metals service center.
Under the agreement, Olympic shareholders would receive more than 1.7 shares of Ryerson stock for each share of Olympic stock; those shareholders would own approximately 37% of the combined company.
Company officials said that the merged business would be valued at $6.5 billion and combine Olympic’s products and capabilities with Ryerson’s “intelligently interconnected network of value-added service centers.”
Ryerson President and CEO Eddie Lehner will be the chief executive of the combined company, and Olympic CEO Richard Marabito will serve as its president and COO. The new board will be led by Olympic Executive Chairman Michael Siegal, and Olympic will name three other “mutually satisfactory” members to the 11-person panel.
“The combination of our organizations will further scale the digital investments that Ryerson has made to bring Olympic Steel's capabilities and formidable expertise into a larger network,” Lehner said in the announcement.
“Together, we will offer new career growth to our employees, enhanced services to our customers, and greater value for our investors,” Marabito added.
The deal is expected to close early next year, pending shareholder and regulatory approval and other conditions.
The announcement coincided with Ryerson’s third-quarter earnings report, which saw revenue rise 3.1% year-over-year to $1.16 billion.
