Worthington Industries, Inc., announces that its Steel Processing business segment has acquired the steel processing assets of Gibraltar Industries, Inc. The acquisition will expand the capabilities of The Worthington Steel Company’s cold rolled strip business and its ability to service the needs of new and existing customers. The acquisition is expected to be accretive in Worthington Industries’ fiscal year.
“This is an excellent growth opportunity for Steel Processing to add higher margin business, while enhancing our capacity to serve existing customers, and new customers in new markets,” says John McConnell, chairman and CEO. “We are bringing together two leading steel processing companies well known for a commitment to high-quality products and superior customer service. We are gaining an excellent workforce to join with us in continuing to deliver the best strip steel products in the industry. Worthington Steel has shown continued improvement and profitability during tough economic conditions largely due to its transformation efforts. The addition of this business will help accelerate our efforts to increase the earnings capacity of Worthington Steel. Our balance sheet remains strong, allowing us to pursue other opportunities that match our criteria for strategic growth.”
Worthington acquired Gibraltar’s Cleveland facility with the added capabilities to roll wider and lighter gauge material along with oscillate slitting. Also included in the transaction were the equipment and inventory of Gibraltar’s Buffalo facility, and a warehouse facility in Detroit (Integrated Terminals). As it exits the steel processing business, Gibraltar plans to begin an orderly process of closing the Buffalo facility and working with Worthington Steel to coordinate customer accounts as they are transferred to Cleveland and Columbus, Ohio. Worthington also acquired a 31-percent interest in Samuel Steel Pickling, a joint venture with operations in Cleveland and Twinsburg, Ohio.
Worthington Steel, a Worthington Industries company, is one of America’s largest independent processors of flat-rolled steel. Operating 15 facilities across the United States and Mexico, the company offers the widest range of services in the industry, including cold-rolling both carbon and stainless steel, configured blanking, cutting-to-length, cleaning and inspecting, acrylic coating, dry lubricating, edging, hot-dipped galvanizing and galvannealing, hydrogen annealing, pickling, slitting, temper rolling, and tension leveling. Worthington Steel also has a technical team in its metallurgical laboratory equipped to assist customers on site and in product testing. For more information go to [www.worthingtonindustries.com].
