Jan 8 2008
Reliance Steel & Aluminum Co. announced today that it has sold the assets and business of the Encore Coils division of Encore Group Limited, a subsidiary of Reliance, to Samuel Son & Co., Ltd., headquartered in Mississauga, Ontario, Canada. Terms were not disclosed. Reliance acquired the Encore Group of metals service center companies (Encore Metals, Encore Metals (USA), Inc., Encore Coils, and Team Tube in Canada) effective February 1, 2007.
The Encore Metals and Team Tube divisions of the Encore Group, which Reliance will retain, specialize in the processing and distribution of alloy and carbon bar and tube, as well as stainless steel sheet, plate and bar products through 12 locations. The Encore Coils division processes and distributes carbon steel flat-rolled products through its five facilities located in Western Canada. For the year ended December 31, 2007, the net sales of Encore Coils were approximately $50 million.
Reliance’s Chairman and Chief Executive Officer, David H. Hannah, said, “The most important part of the Encore Group to us is its specialty metals business, which we will retain. The Encore Coils business did not fit well for us because we do not have any similar facilities nearby that could help support this relatively small business. The sale of the Encore Coils business to Samuel allows us to exit this market without disrupting the Encore Coils customer base.”