SynopsisOlympic Steel Inc. has acquired Central Tube & Bar (CTB) in an all-cash purchase, marking their seventh acquisition in six years. This acquisition enhances Olympic Steel's pipe and tube segment, aligning with their growth strategy targeting higher-margin returns. CTB, a well-established company, specializes in serving original equipment manufacturers and fabricators in the Mid-South region, offering a range of value-added fabrication services. The move expands Olympic Steel's geographic reach and manufacturing capabilities.ArticleOlympic Steel, a prominent national metals service center, has announced its acquisition of Central Tube & Bar (CTB) in a strategic move to further expand its product portfolio and market presence. This transaction represents the seventh acquisition by Olympic Steel in the past six years, demonstrating their commitment to growth and diversification.Central Tube & Bar, founded in 1996, operates from three facilities in Conway, Arkansas, and Tulsa, Oklahoma, with a combined warehouse and production space spanning 162,000 square feet. The company serves a broad clientele, including large original equipment manufacturers (OEMs) and fabricators across the Mid-South region.CTB specializes in providing a range of value-added fabrication services, which include tube laser cutting, tube bending, robotic welding, flat laser burning, and brake press forming. Their expertise extends to fabricated tube and bar products, encompassing round, square, rectangular, and special-shaped tubes. These products cater to various industries, such as transportation, agriculture, commercial furniture, and data center construction. In the trailing 12-month period ending August 31, 2023, CTB recorded revenue of approximately $40 million.Central Tube & Bar will continue its operations under the name "Central Tube & Bar, an Olympic Steel Company." The company will be led by Dustin Ward, who serves as President, along with his experienced management team.Richard T. Marabito, Chief Executive Officer of Olympic Steel, expressed enthusiasm about this strategic acquisition, highlighting the historical performance of their tubular and pipe products segment. He stated, "Olympic Steel’s tubular and pipe products segment has historically been our highest EBITDA-to-sales margin segment, and CTB’s historical financial performance has consistently exceeded our tubular and pipe products returns. CTB is a well-run, growing organization, and a great cultural fit for Olympic Steel."Andrew Greiff, President and Chief Operating Officer, emphasized the expansion's significance in terms of geographic reach and capabilities. He mentioned, "In addition to expanding our geographic reach into the high-growth markets in the Mid-South, Central Tube & Bar extends our value-added contract manufacturing capabilities." This acquisition enhances Olympic Steel's existing tubular and pipe products segment, offering substantial growth opportunities and synergies, particularly in conjunction with their Chicago Tube & Iron business.Central Tube & Bar's integration into Olympic Steel's tubular and pipe products segment, led by William Zielinski, President of Chicago Tube & Iron, is expected to foster further growth and enhance the company's competitive edge.ConclusionOlympic Steel's acquisition of Central Tube & Bar signifies a strategic move in their ongoing expansion journey. This transaction, their seventh acquisition in six years, bolsters Olympic Steel's pipe and tube segment, aligning with their objective of achieving higher-margin returns. Central Tube & Bar's well-established presence and expertise in value-added fabrication services complement Olympic Steel's growth strategy. This strategic expansion not only broadens their geographic reach but also enhances their contract manufacturing capabilities, promising opportunities for growth and synergies.
SynopsisOlympic Steel Inc. has acquired Central Tube & Bar (CTB) in an all-cash purchase, marking their seventh acquisition in six years. This acquisition enhances Olympic Steel's pipe and tube segment, aligning with their growth strategy targeting higher-margin returns. CTB, a well-established company, specializes in serving original equipment manufacturers and fabricators in the Mid-South region, offering a range of value-added fabrication services. The move expands Olympic Steel's geographic reach and manufacturing capabilities.ArticleOlympic Steel, a prominent national metals service center, has announced its acquisition of Central Tube & Bar (CTB) in a strategic move to further expand its product portfolio and market presence. This transaction represents the seventh acquisition by Olympic Steel in the past six years, demonstrating their commitment to growth and diversification.Central Tube & Bar, founded in 1996, operates from three facilities in Conway, Arkansas, and Tulsa, Oklahoma, with a combined warehouse and production space spanning 162,000 square feet. The company serves a broad clientele, including large original equipment manufacturers (OEMs) and fabricators across the Mid-South region.CTB specializes in providing a range of value-added fabrication services, which include tube laser cutting, tube bending, robotic welding, flat laser burning, and brake press forming. Their expertise extends to fabricated tube and bar products, encompassing round, square, rectangular, and special-shaped tubes. These products cater to various industries, such as transportation, agriculture, commercial furniture, and data center construction. In the trailing 12-month period ending August 31, 2023, CTB recorded revenue of approximately $40 million.Central Tube & Bar will continue its operations under the name "Central Tube & Bar, an Olympic Steel Company." The company will be led by Dustin Ward, who serves as President, along with his experienced management team.Richard T. Marabito, Chief Executive Officer of Olympic Steel, expressed enthusiasm about this strategic acquisition, highlighting the historical performance of their tubular and pipe products segment. He stated, "Olympic Steel’s tubular and pipe products segment has historically been our highest EBITDA-to-sales margin segment, and CTB’s historical financial performance has consistently exceeded our tubular and pipe products returns. CTB is a well-run, growing organization, and a great cultural fit for Olympic Steel."Andrew Greiff, President and Chief Operating Officer, emphasized the expansion's significance in terms of geographic reach and capabilities. He mentioned, "In addition to expanding our geographic reach into the high-growth markets in the Mid-South, Central Tube & Bar extends our value-added contract manufacturing capabilities." This acquisition enhances Olympic Steel's existing tubular and pipe products segment, offering substantial growth opportunities and synergies, particularly in conjunction with their Chicago Tube & Iron business.Central Tube & Bar's integration into Olympic Steel's tubular and pipe products segment, led by William Zielinski, President of Chicago Tube & Iron, is expected to foster further growth and enhance the company's competitive edge.ConclusionOlympic Steel's acquisition of Central Tube & Bar signifies a strategic move in their ongoing expansion journey. This transaction, their seventh acquisition in six years, bolsters Olympic Steel's pipe and tube segment, aligning with their objective of achieving higher-margin returns. Central Tube & Bar's well-established presence and expertise in value-added fabrication services complement Olympic Steel's growth strategy. This strategic expansion not only broadens their geographic reach but also enhances their contract manufacturing capabilities, promising opportunities for growth and synergies.
