Reliance Steel & Aluminum Purchases Ferguson Perforating Company
05 October 2017 by Staff
Los Angeles metals service center Reliance Steel & Aluminum Co. announced the the buyout of Ferguson Perforating Company via its wholly-owned subsidiary Diamond Manufacturing company on Tuesday.
No transaction price or other terms were included in the announcement. Reliance will keep the current management team in place save for the company’s present CEO, who will retire.
Gregg Mollins, President and Chief Executive Officer of Reliance, explained that the purchase of Ferguson was a step in his company’s campaign at enhancing its value-added offerings.
“Ferguson fits solidly into our growth strategy of acquiring companies with high value-added processing capabilities and furthers our product diversification. The Company is a very well respected perforator and is known for its ability to provide highly customized and complex processing solutions. Ferguson’s skills complement our existing perforator company, Diamond Manufacturing, and we look forward to the potential opportunities that may arise as a result of this acquisition. We are very pleased to welcome Ferguson to the Reliance family of companies and to expand our presence in this important niche market.”
Ferguson was founded in 1927 and is headquartered in Providence, Rhode Island. The company also operates a plant 560 miles to the west in New Castle, Pennsylvania. The firm specializes in producing highly-engineered and complex perforated metal for diverse end markets, including aerospace, automotive, industrial machinery, consumer electronics manufacturers, and sugar producers. In 2016 the company boasted net sales of US$31 million.
Reliance Steel & Aluminum is North America’s largest metals service center company, operating over 300 locations in over three dozen U.S. states. The firm offers over 100,000 metal products and boasts a book of business including over 125,000 customers across several diverse industries. According to the firm, its average order size last year was US$1,560, with almost half of the orders placed requiring value-added processing and 40 percent requiring a 24-hour turnaround.