North American Metal Service Center Industry Sees More M&A Activity

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Written by Danny Levin, Deputy Editor for IIR News (Sugar Land, Texas)

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Summary

As players in the North American steel industry look to consolidate market share, companies are looking to M&A activity in order to expand their footprint.

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North American Steel Mergers & Acquisitions

As players in the North American steel industry look to consolidate market share, U.S.-based companies are exploring mergers and acquisitions to expand their footprint.

Shareholders for Ryerson Holding Corporation and Olympic Steel--two of North America's largest metal service center companies--on February 12 approved a merger agreement in which Olympic Steel will receive roughly 37% ownership of the combined company via an all-stock transaction. The transaction had been expected to close on February 13.

Metal service centers are companies that store, process and distribute metal products such as steel and aluminum.

While Ryerson is a more general value-added metals processor and distributor with operations in North America and China, Olympic Steel is focused strictly on the domestic market--providing the direct sale and value-added processing of carbon and coated sheet, plate and coil steel products; stainless steel sheet, plate, bar and coil; and pipe, tube, bar, valves and fittings, among other products.

In an October press release initially announcing the agreement, Eddie Lehner, chief executive officer of Ryerson, said the combined company "couldn't be more complementary and synergistic around the products, services, footprint, and customer experience that will enhance our market presence ... will further scale the digital investments that Ryerson has made to bring Olympic Steel's capabilities and formidable expertise into a larger network and provide our customers with greater network density, faster lead times, and a wider array of custom solutions from pick-pack-and-ship to finished parts."

Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database is tracking 69 operational plants attributed to Ryerson Holding and 36 operational plants attributed to Olympic Steel.

Industrial Info is tracking Olympic Steel's addition of a cut-to-length line at its steel coil plant in Minneapolis, Minnesota, with operations expected to begin in the first half of this year. Subscribers to the GMI Project Database can read the project report.

Meanwhile, two entities last month announced a potential agreement: Worthington Steel and Germany-based Kloeckner & Co. signed a business combination agreement that includes Worthington's voluntary public takeover offer for all of the latter's outstanding shares.

According to the related press release, Kloeckner is a "a leading service center and metal processing company" serving North America and Europe. "It has broad product capabilities including carbon flat-roll steel (sheet and plate), electrical steel, aluminum, stainless steel and long products." Worthington said the combination, valued at $2.4 billion in an all-cash transaction, would create the second-largest steel service center company in North America by annual revenue (more than $9.5 billion).

Industrial Info is tracking 31 operational plants attributed to Kloeckner worldwide and one under construction, albeit for aluminum rather than steel. The grassroot aluminum flat-rolled processing plant in Columbus, Mississippi is designed to produce 150 metric tons of aluminum per year.

A steel project underway and expected to wrap up by the end of the year is an expansion of its structural steel plant in Santiago de Queretaro, Mexico. Subscribers can read more information on Kloeckner's projects in Mississippi and Mexico, and click here for a full list of the company's plants.

While the aforementioned companies did not explicitly state the uncertain trade and economic landscape was a factor, it is reasonable to assume U.S. President Donald Trump's implementation of Section 232 tariffs--and reshoring and increasing investment in the U.S. steel industry--are causing companies to rethink their growth efforts.

Worthington Steel Chief Executive Officer told Fastmarkets in a January interview that only "bigger businesses with stronger balance sheets" would be able to withstand market fluctuations.

A major example is Japan-based Nippon Steel's acquisition of U.S. Steel, which has a $14 billion, multi-year growth plan in place. For more information, see November 5, 2025, article - U.S. Steel Outlines $14 Billion Capital Growth Plan and June 19, 2025, article - Nippon Steel-U.S. Steel Deal Closes.

U.S.-based Steel Dynamics has completed its acquisition of New Process Steel, whose steel fabrication platform will support the former's steel mills and allow for higher utilization.

But in early January, without any engagement, BlueScope Steel rejected yet another unsolicited, non-binding takeover proposal from Steel Dynamics and Australia's Seven Group Holdings. The former would have acquired BlueScope's North American operations, which includes a flat-roll steel mini-mill in Delta, Ohio.

Key Takeaways

• North American steel industry players are exploring M&A activity to consolidate market share.
• One example is the Ryerson Holding-Olympic Steel merger, as well as Worthington Steel's recent takeover offer for Kloeckner & Co.
• Larger entities will be better positioned to obtain market share and avoid trade and economic uncertainty such as tariffs.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).