CHICAGO Pennsylvania Steel Co. Inc. has purchased Metal
Connections Inc. (MCI), its third acquisition in 14 months, in
its efforts to broaden the companys geographic and
product line reach.
The Bensalem, Pa.-based processor and distributor of
cold-finished steel bar, tool steel and other products has
acquired Hauppauge, N.Y.-based MCI, which saw-cuts and
distributes aluminum plate for customers in the New York City
and Long Island markets.
Long Island is a difficult market to get product into
unless youre located there. Metal Connections fits our
model nicely, Pennsylvania Steel president and chief
operating officer Barry R. Walsh told AMM
give us a presence, which we will expand and
MCI, after it moves to a larger location nearby, will
distribute all of Pennsylvania Steels products in
addition to aluminum. We will now have the ability to
grow inventory in a growing market, Walsh said.
He also expects to install carbon steel bar sawing equipment in
addition to MCIs arsenal of plate and sheet
Pennsylvania Steel purchased Winchester Metals Inc.s
Powhatan, Va., operations in February, and bought Schwartz
Steel Service Inc., Gastonia, N.C., in September 2011 (
amm.com, Feb. 14
Winchester Metals is doing very well, Walsh said.
We found a wonderful building in Ashland, Va., so the
company is now in its permanent home and has increased its
inventory. We are putting more (processing) equipment there as
Walsh described the purchase of Winchester Metals as a
logical expansion of our market footprint, adding that
with the Virginia operation, we cover all of New England
through the Mid-Atlantic.
Winchester Metals sells steel structurals, sheet and plate to
job shops, screw machine manufacturers and other industrial
customers; Pennsylvania Steel added steel bars and tubing and
aluminum plate to its inventory.
The bigger acquisition was Schwartz, and that integration
has gone well, Walsh said Friday. It has a good
reputation and a sizable position in the market. Our ability to
grow the products we sell there has been a pleasant surprise.
We expect blue sky to be the limit for revenue
improvement at both Winchester and Schwartz, he said,
adding that each represented totally new markets
for Pennsylvania Steel.
Metal Connections is more of a hybrid, as Pennsylvania Steel
already sells aluminum plate into the New York market, but it
will now be doing more with local product and
presence, Walsh said.