Situation:

Allegheny Steel Distributors, Inc. (“Allegheny”) is a top performing metal service center specializing in processing and distributing flat-roll steel products. Located in Indianola, PA the company had annual sales of approximately $40 million.

Allegheny’s owner was planning to retire, while ensuring the future of his company and maximizing its value. However, he would only consider selling his company to one specific acquirer. This acquirer, Reliance Steel & Aluminum, was (and is) one of the nation’s top performing metal services company with a nationwide network of over 100 facilities and $9.2 billion in annual sales. 

Ameridan’s Role:

Allegheny engaged Ameridan to initiate discussions with Reliance and to structure & effect a transaction that met the owner’s objectives. The engagement was successfully completed when Reliance Steel & Aluminum Co. closed the acquisition of Allegheny, at a significant market premium.