Olympic Steel purchases Metal-Fab for $131M | Local News

Olympic Steel in Bedford Heights acquired Metal-Fab, Inc. Jan. 3, 2023 for $131 million.

Metal-Fab, which was founded in 1958, largely focuses on coated carbon and stainless steel products with a concentration on venting, according to a news release. Olympic Steel acquires Metal-Fab’s two warehousing and fabrication facilities, both located in Wichita, Kan., where Metal-Fab is based.

“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,” Olympic Steele CEO Richard T. Marabito said in the release. “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.”

Andrew Greiff, president and chief operating officer, echoed those sentiments.

“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,” Greiff said in the release, referring to earnings before interest, taxes, depreciation and amortization. “It provides us with a solid platform for accelerating growth in two target market segments – carbon coated and stainless steel. 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.”

The acquisition raises Olympic Steel’s asset-based revolving credit facility from $475 million to $625 million and their total debt under the revolving credit facility to $297 million with an availability of around $280 million, according to the release.

Michael Siegel is the executive chairman of Olympic Steel Inc.

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