Olympic Steel ( NASDAQ: ZEUS ) +2.2% in Tuesday's trading after agreeing to acquire Metal-Fab Inc., a Kansas-based manufacturer of venting and filtration products for residential, commercial and industrial applications - products constructed largely of coated carbon and stainless steel - for $131M.
Olympic Steel ( ZEUS ) said the acquisition is the second largest in its history and the sixth deal in the past five years.
"Metal-Fab's consistent earnings model has proven recession-resistant and is a perfect strategic fit for Olympic Steel," CEO Richard Marabito said.
The company also said the size of its asset-based revolving credit facility has climbed to $625M from $475M, with total debt under the revolver of $297M and availability of $280M, "leaving significant capital to continue its diversification strategy through investments in additional acquisitions."
Olympic Steel ( ZEUS ) capacity expansions ramping in FY 2023 should increase EBITDA by ~$10M annually, Mohammed Saqib writes in an analysis posted on Seeking Alpha .
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Olympic Steel to buy Metal-Fab in $131M deal