Cleveland, Ohio-based national service center Olympic Steel, Inc. announced Wednesday that it will acquire all of the outstanding common shares of service center Chicago Tube and Iron Company (CTI). Pending the completion of the merger, CTI will become a wholly-owned subsidiary of Olympic for $150 million in cash and the assumption of approximately $6 million in debt.
"We are thrilled to welcome CTI to the Olympic Steel family," said Michael D. Siegal, Chairmand and CEO of Olympic Steel. "Our patience and strong balance sheet have been rewarded with the addition of CTI and its complimentary financial strength and values. The acquisition of CTI provides a compelling value for our combined customers, suppliers, employees and shareholders. CTI is expected to be immediately accretive to our earnings. We are excited to enhance our commercial opportunities, as we add the companies' product offerings to our expanded customer base. CTI also increases our distribution footprint with its network of 10 operations."
The transaction is expected to close on July 1 of this year.