Norfolk Iron & Metal Co. is expanding — in a big way.
The full-line steel service center has entered into an agreement to purchase O’Neal Flat Rolled Metals, which is a wholly-owned subsidiary of O’Neal Industries, Inc. of Birmingham, Ala.
Representatives of both companies jointly announced the agreement Friday morning, which is expected to close yet this year.
O’Neal Industries is the largest family owned group of metals service centers in the United States — a company that Norfolk Iron & Metal is familiar with and worked with over the years, said Dick Robinson, company president.
“Their people are unbelievable. That’s one of the main reasons we were interested in the acquisition,” he said.
Norfolk Iron and Metal, founded in 1908, is a family owned and operated metals service. Its five locations offer customers sheet, plate, long products and tubing as well as advanced value-added services with a growing array of processing equipment.
With the acquisition, Norfolk Iron & Metal will take over eight locations currently operated by O’Neal Flat Rolled Metals. The five primary facilities are in Brighton, Colo., New Century, Kan., Garland, Texas, Ogden, Utah, and in New Jersey. Smaller locations are in Las Vegas, Albuquerque, N.M., and Boise, Idaho.
The division’s headquarters is in Brighton, which is not too far from Norfolk Iron & Metal’s existing location in Greeley, Colo.
Once the acquisition is finalized, Norfolk Iron & Metal will have about 1,000 employees, Robinson said.
Once Norfolk Iron & Metal began looking into the possible acquisition this summer, the appeal was obvious, he said.
“They fit our geography in terms of facility locations and their product line is adjacent to ours, so this will help us get into white metals — aluminum, stainless and galvanized steel products,” Robinson said.
Once the acquisition is complete, Norfolk Iron & Metal will be delivering steel products on a daily basis to 30 states.
Headwall Partners and XMS Capital Partners are serving as financial advisors to O'Neal Industries in regard to the acquisition.
O'Neal Flat Rolled Metals is a leading processor and distributor of non-ferrous and carbon flat rolled metal products. Its eight locations house over 650,000 square feet of processing and warehousing capabilities, offering customers sheet and coil materials including stainless, aluminum, hot rolled, cold rolled and galvanized. The division also offers painted, polished and coated material to suit diverse customer needs.
O'Neal Industries (ONI) is the largest family owned group of metals service centers in the United States. Composed of six leading brands and generating sales of approximately $2.6 billion in 2018, ONI has more than 80 specialized facilities throughout North America, Europe and Asia.