SteelSummit will bank on Magic Steel’s platform for its future strategic growth. The terms of the acquisition have not been disclosed by the companies.
SteelSummit Holdings, a US-based processor and distributor of flat-rolled steel products, has acquired Magic Steel Sales, an America supplier of cold rolled, hot rolled, and coated slit steel products. The companies have not disclosed the terms of the all-cash acquisition deal. SteelSummit is committed to fulfilling the steel demand of manufacturers mainly in the construction, HVAC, and automotive industries. It is a subsidiary of Sumitomo Corporation of Americas, which is engaged in pursuing investment, marketing, and trade partnership opportunities with enterprises in the Americas. It runs metal service centers in two locations in the US and is considered to be one of the leading national metal service centers in the country.
“Our company’s decision of handing over Magic Steel’s reins after 45 years will provide us a great foundation for future success. I’d like to give my gratitude and thanks to all present and past business partners, suppliers, customers, and employees of our company. None of our success and growth would have been possible without them. The past ownership wishes the Magic Steel family and SteelSummit every success as they move ahead,” said CEO of Magic Steel Sales, Joe Maggini.
SteelSummit to benefit with addition of new markets and geographic diversity
Magic Steel has grown into a multi-purpose, multi-state full-scale steel service operation from a one-person steel brokerage operation since decades. It serves the southeastern and mid-western part of the US while operating in three states, i.e. Indiana, Alabama, and Michigan. It provides galvannealed, aluminized, prepainted, hot dipped galvanized, electrogalvanized, cold rolled, and hot rolled steel products to US customers.
“SteelSummit is very delighted to welcome Magic Steel’s employees to our family. The acquisition perfectly complements our company as it adds geographic diversity and new markets with minimal customer overlap. For future strategic growth, it will provide our company an outstanding platform. SteelSummit is very pleased with Joe and the leadership team of Magic Steel for entrusting our company for building on the great values and success of Magic Steel he founded in 1974,” said Todd Rollins, CEO of SteelSummit.