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12/2024

TAMPA BAY STEEL acquired by RUSSEL METALS

UNITED STATES Industrial Services / Industrial & Technical Distribution EV 50M - 150M USD

Context

The acquisition of the target by the group marks a definitive structural expansion into the Florida market. The strategic rationale for this transaction centers on a "geographic-extension" play, merging the target's industry-leading technical operational depth in value-added processing with the group’s extensive North American distribution infrastructure. This fusion effectively creates a specialized powerhouse in the regional metals arena, providing the organization with the scientific talent and high-performance equipment required to address the increasing complexity of industrial and construction supply chains. This operation allows the group to execute a definitive structural transformation of its product mix by integrating specialized non-ferrous offerings. By incorporating the target's innovative processing platform, which has benefited from significant recent investments in advanced hardware, the organization can now provide a more robust and integrated solution set for specialized manufacturing.

TAMPA BAY STEEL, which reported an EBITDA margin of in 2023, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Business Services sector (11.3x).

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Target

Tampa Bay Steel Corporation operates as a premier technology-enabled organization dedicated to the engineering and distribution of specialized metal solutions. The entity’s business model is centered on a high-precision framework of value-added processing services, which include cutting, shaping, and material manipulation. Its value proposition is anchored in technical operational depth, providing a comprehensive range of carbon and non-ferrous products to industrial and construction sectors. Strategically, the firm focuses on the deployment of state-of-the-art processing equipment to enhance material performance and meet specific customer requirements. By maintaining a specialized focus on regional leadership and high-fidelity service standards, the organization ensures a vital role in the structural advancement of regional industrial supply chains.

Ent. Value

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year
Rev
EBITDA
EBIT
2023
2022

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REFERENCES

Valuation range: EV 50M - 150M USD

Revenue range: 100M - 200M USD

EBITDA range: 5M - 25M USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of TAMPA BAY STEEL by RUSSEL METALS are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: tampa bay steel

Acquirer: russel metals