Chicago, IL – Ryerson Inc., a leading distributor and processor of metals in North America and China, announced today that it has expanded into South America for the first time by acquiring a 50% stake in Açofran Aços e Metais LTDA (“Açofran”), a steel service center based in São Paulo, Brazil. Financial terms of the transaction were not disclosed.
“We continue exploring ways to expand our global footprint and diversify our portfolio,” said Ryerson President and CEO Mike Arnold. “Brazil is a large and growing market and this investment provides Ryerson an important foothold in South America. Extending our reach will allow us to penetrate new markets and better serve our existing global customers.”
Açofran’s existing shareholders Omar Silva, Ivo Godoi, and Eduardo Tesche retained a 50% interest in the business.
“We are excited to join forces with Ryerson. We were looking for a true strategic partner, one that would not only provide capital but also the product, industry, and operational expertise we need to take Açofran to the next level,” said Mr. Godoi. “Given its scale, global reach, and commitment to growth, Ryerson is the ideal partner for Açofran.”
Açofran was established in 1982 and specializes in cutting and distributing special, tool, and engineered steel. The company’s product line comprises primarily long products, specifically flat and round bar. Açofran will report into Ryerson Southeast Region President Kevin Richardson.
“Açofran is a well-run, professional metals service center and will integrate seamlessly into the Ryerson network,” said Mr. Richardson. “We look forward to working with the Açofran team to expand into additional product lines and end markets. We will also continue exploring opportunities to build on our investment in South America through additional acquisitions.”
Ryerson has now completed six acquisitions in just over two years, acquiring Houston-based Texas Steel Processing Inc. in January 2010; Mobile, Ala.-based Cutting Edge Metal Processing Inc. in May 2010; Houston-based SFI-Gray Steel Inc. in August 2010; Streetsboro, Ohio-based Singer Steel in March 2011; and Pittsburgh-based Turret Steel Industries in December 2011.
About Ryerson Inc.
Ryerson Inc., a Platinum Equity company, is a leading North American processor and distributor of metals, with operations in the United States, Mexico, Canada, China, and Brazil. The Company distributes and processes various kinds of metals, including stainless and carbon steel and aluminum products.