Olympic Steel Inc. (Nasdaq: ZEUS), a leading national metals service center, today announced that it has acquired the assets of McCullough Industries, Inc. The all-cash purchase closed on Jan. 2, 2019 and is immediately accretive. Terms were not disclosed. This represents Olympic Steel’s second strategic acquisition in the past nine months.
McCullough Industries, located in Kenton, Ohio, manufactures and sells branded self-dumping hoppers used in a variety of industrial applications. McCullough’s products are primarily sold through industrial distributors and catalogues.
“The McCullough acquisition marks our entry into manufacturing and marketing metal-intensive branded products, which is a key element to our long-term growth strategy,” said Richard T. Marabito, Olympic Steel Chief Executive Officer. “Vertical integration into manufacturing metal products allows us to utilize our existing assets and expertise to more consistently capture higher profit from the point of raw material purchase through the ultimate sale to the end customer.”
McCullough and Wright branded containers are recognized nationally for their durability and performance. Constructed from carbon and stainless steel, the hoppers are produced in a variety of configurations. Easily transported, they are used for storing, handling, recycling and transporting materials used in construction, food service, and landscaping applications. The self-dumping hoppers can also be fitted with feeding devices and integrated into manufacturing processes and assembly lines for scrap and liquid waste collection.
“We are pleased that Stephen McCullough has entrusted Olympic Steel to build on the success and values of the Company founded in 1965 by his father Wright McCullough,” Marabito said. “We look forward to synergistically adding purchasing, metal processing and logistical advantages provided by our service center platform to enhance the already strong financial performance of the business.”
The products will continue to be manufactured in Kenton, Ohio by the existing workforce.
In conjunction with the acquisition, Olympic Steel veteran Joseph Casey has been named General Manager – McCullough Industries. Casey began his career with Olympic Steel in 2012 at the Integrity Stainless Division, and has progressed through several positions with increasing responsibility including Inventory Control Supervisor, Service/Scheduling Manager and Plant/Production Manager. Casey is a certified Lean Six Sigma Black Belt, and in 2017, he was promoted to his most recent position of Purchasing Manager.