Reliance Steel & Aluminum Co. Completes Acquisition of Fry Steel Company

LOS ANGELES, Jan. 02, 2020 (GLOBE NEWSWIRE) -- Reliance Steel & Aluminum Co. (NYSE: RS) announced today that effective December 31, 2019, it has acquired all of the outstanding capital stock of Fry Steel Company (“Fry Steel”), a general line and long bar distributor founded in 1948 and located in Santa Fe Springs, California. Fry Steel performs cutting services on its diverse product assortment of over 8,000 types and conditions of long bar product and provides “in-stock” next day delivery through its proprietary fleet of trucks. For the year ended December 31, 2019, Fry Steel’s net sales were approximately $100 million. Steve Fry, Owner and Chief Executive Officer of Fry Steel, retired upon closing of the acquisition. The terms of the transaction were not disclosed.

“Fry Steel is very well-respected in the metals industry and is known for stocking hard-to-find items as well as providing exceptional customer service and next day delivery. We have admired Fry Steel for many years and are excited to welcome them into the Reliance Family of Companies. Fry Steel’s focus on specialty products and quick turn, small order sizes aligns well with our business model and our strategy of investing in high quality, high margin businesses,” commented Jim Hoffman, President and Chief Executive Officer of Reliance. “I’d like to personally thank Steve Fry for his dedication over the past 50 years in building such a successful and well-respected company.”

About Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California, is the largest metals service center company in North America. Through a network of more than 300 locations in 40 states and thirteen countries outside of the United States, Reliance provides value-added metals processing services and distributes a full line of over 100,000 metal products to more than 125,000 customers in a broad range of industries. Reliance focuses on small orders with quick turnaround and increasing levels of value-added processing. In 2018, Reliance’s average order size was $2,130, approximately 49% of orders included value-added processing and approximately 40% of orders were delivered within 24 hours. Reliance Steel & Aluminum Co.’s press releases and additional information are available on the Company’s website at www.rsac.com.

Forward-Looking Statements
This press release may contain certain statements that are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements concerning Reliance’s industry, end markets, business strategies and expectations concerning future demand and metals pricing and the Company’s results of operations, margins, profitability, impairment charges, taxes, liquidity, litigation matters and capital resources. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “preliminary,” “range” and “continue,” the negative of these terms, and similar expressions.

These forward-looking statements are based on management's estimates, projections and assumptions as of today’s date that may not prove to be accurate. Forward-looking statements involve known and unknown risks and uncertainties and are not guarantees of future performance. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements as a result of various important factors, including, but not limited to, those disclosed in reports Reliance has filed with the United States Securities and Exchange Commission (the “SEC”). Risks and uncertainties related to the transaction include, but are not limited to, the possibility that the expected benefits of the transaction may not materialize as expected; disruption from the proposed transaction making it more difficult to maintain business and operational relationships; and the failure to successfully integrate the acquired company. As a result, these statements speak only as of the date that they are made, and Reliance disclaims any and all obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Important risks and uncertainties about Reliance’s business can be found in “Item 1A. Risk Factors” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC.

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