Olympic Steel, Inc., a national metals service center based in Cleveland, Ohio, announced on May 18 that it entered into a merger agreement with Chicago Tube and Iron Company.
Olympic Steel is a leading U.S. metals service center focused on the direct sale and distribution of large volumes of processed carbon, coated, aluminum and stainless steel flat-rolled sheet, coil and plate products.
Founded in 1914, CTI is one of the largest steel service centers in the United States, with ten operations throughout the Midwest. CTI inventories over 30,000 line items of tubing, pipe, bar, valves and fittings from some of the world's premier manufacturers.
The purchase price is $150 million in cash, plus the assumption of approximately $6 million of indebtedness.
"We are excited to enhance our commercial opportunities, as we add the combined companies' product offerings to our expanded customer base, " said Michael D. Siegal, CEO of Olympic Steel. "CTI also increases our distribution footprint with its network of ten operations. With our other recently announced expansions, Olympic and CTI combined will operate from 30 locations to serve our growing customer base."
Dr. Donald McNeeley, President and COO of CTI, will enter into an five year employment agreement with Olympic and is expected to become a member of Olympic's board of directors.