Columbus, Ohio-based Worthington Industries, Inc. announced Monday that it has purchased the steel processing assets of Gibraltar Industries, Inc. The acquisition will expand the capabilities of the Worthington Steel Company’s cold rolled strip business, such as the production of wider and lighter gauge material along with oscillate slitting.
The deal includes Gibraltar’s Cleveland facility, the equipment and inventory of its Buffalo, N.Y. facility, and a warehouse in Detroit (Integrated Terminals). Worthington also acquired a 31-percent interest in Samuel Steel Pickling, a joint venture with operations in Cleveland and Twinsburg, Ohio. The transaction finalized Buffalo-based Gibraltar’s exit from steel processing businesses and established the company as a manufacturer and distributor of products for the building and industrial markets.
“Looking ahead, we expect to redeploy the capital from this sale to strengthen our product leadership positions in targeted growth areas that provide us with stronger performance characteristics,” said Brian J. Lipke, Gibraltar’s Chairman and CEO.
John McConnell, Chairman and CEO of Worthington Industries, added, “This is an excellent growth opportunity for Steel Processing to add higher margin business, while enhancing our capacity to serve existing customers, and new customers in new markets.”
Financial details of the sale have not been released, however it has been reported that approximately 150 Gibraltar employees, most from the Cleveland plant, will now work for Worthington.