Market Report
Recent Acquisitions
Acquirer Acquired Incentive
BM Group |
LE Steel |
After acquiring LE Steel , BM Group now represents over fifteen independent businesses , offering a comprehensive network of complementary businesses to its clients . BM Group ’ s financial strength and diverse portfolio of businesses brings cost savings , efficiencies , and other benefits to its clients . |
Ryerson Holding
Ryerson Holding
Commercial Steel Products owned by Gupta Capital
Apogee
Ford Tool
Ace Steel
Apogee has been serving customers in Canada and the U . S . for over 30 years . It is a full-line fabrication company providing sheering , punching , forming , and laser cut processing in addition to welding and hardware assembly services . Apogee provides complex fabrication assemblies in stainless steel .
FTS ’ s sawing and machining capabilities are aligned with those of Southern Tool Steel , a member of the Ryerson Family of Companies acquired in 2015 . This strategic acquisition presents an opportunity to recognize synergies between the two brands as Ryerson expands its tool steel franchise .
Gupta Capital Group is a single-family office engaged in sustainably growing a diversified portfolio of operating businesses focused on the steel and metals industries . In addition to its portfolio companies , GCG manages a large , diversified portfolio of investments across a range of sectors including private equity , real estate , and private debt .
Located in Dallas , TX , Commercial Steel Products LLC is a leading value-added supplier of high-quality steel products , mostly focused on tubular products for the oil and gas industry . Houston-based Ace Steel Supply has over 50 years of combined experience in the steel industry Ace specializes in sheet and plate products in Stainless .
NIM Group |
Plateplus Tulsa |
The acquisition adds to NIM Group ’ s acquisition of Plateplus ’ s Windsor , Colorado plant earlier this year . NIM Group will now have eighteen locations stretching from New Jersey to Washington with daily deliveries to customers in over thirty states . |
Klockner Becker Stainless
Hernandez Stainless GmbH and RSC Rostfrei Coilcenter GmbH
Becker ’ s entry into stainless steel processing is a significant extension to its product and service portfolio . Hernandez provides surface machining and stocks stainless flat products . RSC is specialized in stainless steel coil cutting .
Aperam |
ELG |
The acquisition of ELG ’ s recycling business will further transform and |
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strengthen Aperam . It will also accelerate Aperam ’ s expansion into |
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geographies and industries . |
Rheem |
DEJONG |
This partnership provides significant opportunity to support market |
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expansion by pairing hot water storage tanks with sustainable energy |
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sources , creating an integrated system . |
SHF , Inc ., a Harbour Group company
AMFM , Omega One
OmegaOne , based in Willoughby , OH , is a manufacturer of metal hose braid bands and stainless-steel fittings and adapters serving hose distributors and manufacturers .
Stainless steel products generate USD $ 20 billion in revenues in this Solutions Market . 2 Dryers , kilns , and furnaces are not included in the total , even though stainless products used with them are . If they were to be included , the stainless percentage of the market drops from 2.6 % to 1.9 %. In general , stainless products represent about 0.2 % of the total installed cost of process systems . These percentages are all based on the price paid by the OEM . Simply put , the price paid by the pump company for a pump casing would be included and not the sales price of the stainless steel pump . |
need to continually assess the opportunities and make critical decisions on a timely basis .
References
1 . Air / Gas / Water / Fluid Treatment and Control : World Market published by the McIlvaine Company
2 . AWE Stainless Markets published by the McIlvaine Company
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Figure 3 . |
About the Author
Robert McIlvaine is the CEO of the McIlvaine Company , which publishes Industrial Valves : World Markets . He was a pollution control company executive prior to 1974 when he founded the present company . McIlvaine oversees a staff of 30 people in the U . S . and China . http :// www . mcilvainecompany . com
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An analysis has been undertaken to determine the incentives for recent stainless acquisitions , see Figure 3 .
Further Considerations
There are a few alternative options for stainless companies looking to transition to the total solutions market . One option for mid-sized stainless manufacturers is to be acquired by a larger company . Another option is to become part of a private equity portfolio which has complementary solution products . A third option is to expand one market niche at a time .
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