January 4, 2023- Olympic Steel Inc. announced that it has acquired all outstanding shares of Metal-Fab, Inc. The purchase is expected to be immediately accretive.
Metal-Fab was founded in 1958 and operates from two warehousing and fabrication facilities in Wichita, Kansas. 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," said Richard T. Marabito, Chief Executive Officer. "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," said Andrew Greiff, President and Chief Operating Officer. "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 announced that it has 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.
