Ryerson Holding Corporation, a leading value-added processor and distributor of industrial metals, announced today its entry into a definitive merger agreement to acquire Central Steel & Wire Company, a metal service center with six locations across the Central and Eastern US.
Central Steel & Wire offers a wide selection of products and capabilities, with a commercial portfolio centered on bar, tube, plate, and sheet products. Central Steel & Wire employs approximately 900 people and has annual revenue of approximately $600 million. Central Steel & Wire will continue to operate under its current brand name following the closing of the transaction.
The transaction values Central Steel & Wire at an enterprise value of $140,000,000 on a cash-free, debt-free basis with a normalized level of working capital. Ryerson intends to fund the acquisition through existing and acquired sources of liquidity given Ryerson's strong performance and ample liquidity as reported in Ryerson's first quarter financial results on May 2, 2018.
Completion of the transaction has been approved by the board of directors of both companies and following Central Steel & Wire's entry into the merger agreement, Central Steel & Wire shareholders holding approximately 73 percent of Central Steel & Wire's issued and outstanding voting shares executed a written consent approving the merger agreement and the transaction.