CHICAGO Service center operator Triple-S Steel Holdings Inc. has taken over long-term leases on three former ONeal Steel Inc. facilities, the company said.
The facilities in Grand Junction and Commerce City, Colo., and Farmington, N.M., have been operating under the Intsel Steel West division of Triple-S Steel since Oct. 14.
"We just took over the leases ONeal had and hired their people," Triple-S Steel chief executive officer Gary Stein told AMM Oct. 15. "Its a good outcome for ONeal, for their employees and for us."
Birmingham, Ala.-based ONeal Steel announced in September that over the next 18 months it planned to close four warehouses far from their core geography, which raised freight costs and made next-day deliveries difficult (amm.com, Sept. 24). The fourth facility, in Clifton, N.J., is not part of Triple-S Steels deal.
"This is just geography that works better for us. We have been operating service centers in Denver and Salt Lake City, Utah, for years," Stein said. The three locations have a combined space of 125,000 square feet and stock "mostly the same products we already sell: carbon structural sections, plate and sheet."
Triple-S Steel approached ONeal after its announcement, Stein said. "This deal speaks to the fact that we are old-line (privately held) steel companies that can make decisions happen quickly."
Stein could not yet estimate how much revenue the three locations will generate. "We bought the equipment and inventory, took over leases and hired the people," he said, but did not purchase the branches business records.
Houston-based Triple-S Steel acquired Macon, Ga.-based General Steel Inc. during the spring (amm.com, June 4).
Prior to being acquired by ONeal Steel in 2006, the Colorado and New Mexico warehouses were operated by the McCallin family as Timberline Steel. Dan McCallin has joined Triple-S Steel to aid in integration and growth initiatives.