Reliance Steel & Aluminum Co. is the largest metals service center company in North America. The Company established in Los Angeles, California in 1939 as a small, local distributor of steel reinforcing bar. Mr. Thomas Neilan started Reliance Steel Products Company on February 3, 1939.
Today, Reliance Steel & Aluminum provides value-added metals processing services and distributes a complete line of more than 100,000 metal products to over 125,000 customers in a wide spectrum of industries. The Company has its corporate headquarters in Los Angeles.
Reliance Steel & Aluminum had more than $9.35 billion in net sales and $1.03 billion of cash flow from operations in 2015. The Company has achieved growth via the acquisition of 61 service center companies since its initial public offering (IPO) in 1994. The Company’s U.S. revenues of $8.6 billion in 2015 accounted for approximately 4.3 percent of the entire U.S. market.
Reliance Steel & Aluminum has a network of greater than 300 locations in 40 states and twelve countries outside of the U.S. The Company’s average order size was $1,660 in 2015. Roughly 47 percent of orders included value-added processing. Roughly 40 percent of orders were delivered within 24 hours.
Reliance acquires products from primary metals producers (mills). It subsequently provides value-added services to process metals to customers’ specifications. Typically, end customers are not willing or able to invest in the required technology and equipment to process metals. Therefore, this is where Reliance Steel & Aluminum steps in. Customers buy from service centers to obtain value-added metals processing, readily available inventory, dependable and well-timed delivery, flexible order size, and quality control.
In 2010, Reliance acquired Diamond Manufacturing. This gave the Company entry into the perforated metals market. Value added processing that Reliance performs includes cutting to length; blanking; slitting; burning; plasma burning; precision plate sawing; sawing; shearing; and more. It performs this value-added processing before distributing metals products to manufacturers and other end-users.
Reliance Steel & Aluminum has a track record of 57 years of consecutive quarterly cash dividends. It has increased its regular dividend 22 times since its IPO in 1994. Dividend payments have grown 7,094 percent since the 1994 IPO.
In August 2016, Reliance Steel & Aluminum announced that it acquired all the capital stock of Alaska Steel Company (Anchorage, Alaska). Alaska Steel has the largest on-hand inventory in Alaska. The company provides same day and next day delivery from its three facilities in Anchorage, Fairbanks and Kenai. Established in 1982, Alaska Steel is a full-line metal distributor providing steel, aluminum, stainless and specialty metals and related processing services.
Alaska Steel operates as a wholly-owned subsidiary of Reliance’s American Metals Corporation subsidiary. Alaska Steel represents Reliance Steel & Aluminum’s entry into the important Alaskan market. Alaska Steel furthers Reliance’s geographic, customer, as well as product diversification.
Reliance has acquired Tubular Steel, Inc. of St. Louis, Missouri. Tubular Steel is a distributor and processor of carbon, alloy and stainless steel pipe, tubing and bar products. Its Fiscal Year (FY) 2015 net sales were approximately $150 million.
Reliance has also acquired Best Manufacturing, Inc., based in Jonesboro, Arkansas. Best Manufacturing is a custom sheet metal fabricator of steel and aluminum products on a direct and toll basis. Its FY 2015 net sales were approximately $20 million.
Reliance Steel & Aluminum usually enables an acquired company to continue to operate as a standalone company, post acquisition.