Worthington Steel acquires strip steel assets of Gibraltar

Worthington Industries Inc. announced February 1 that its Steel Processing business segment has acquired the steel processing assets of Gibraltar Industries Inc. The acquisition will expand the capabilities of The Worthington Steel Company’s cold rolled strip business and its ability to service the needs of new and existing customers. The acquisition is expected to be accretive in Worthington Industries’ fiscal year.

“This is an excellent growth opportunity for Steel Processing to add higher margin business, while enhancing our capacity to serve existing customers, and new customers in new markets,” said John McConnell, chairman and CEO of Worthington Industries. “We are bringing together two leading steel processing companies well known for a commitment to high-quality products and superior customer service. We are gaining an excellent workforce to join with us in continuing to deliver the best strip steel products in the industry.” McConnell added, “Worthington Steel has shown continued improvement and profitability during tough economic conditions largely due to its Transformation efforts. The addition of this business will help accelerate our efforts to increase the earnings capacity of Worthington Steel. Our balance sheet remains strong, allowing us to pursue other opportunities that match our criteria for strategic growth.”

Worthington acquired Gibraltar’s Cleveland facility with the added capabilities to roll wider and lighter gauge material along with oscillate slitting. Also included in the transaction were the equipment and inventory of Gibraltar’s Buffalo facility, and a warehouse facility in Detroit (Integrated Terminals). As it exits the steel processing business, Gibraltar plans to begin an orderly process of closing the Buffalo facility and working with Worthington Steel to coordinate customer accounts as they are transferred to Cleveland and Columbus, Ohio. Worthington also acquired a 31 percent interest in Samuel Steel Pickling, a joint venture with operations in Cleveland and Twinsburg, Ohio.

About Worthington Steel
Worthington Steel, a Worthington Industries company, is one of America’s largest independent processors of flat-rolled steel. Operating 15 facilities across the United States and Mexico, the company offers the widest range of services in the industry, including cold-rolling both carbon and stainless steel, configured blanking, cutting-to-length, cleaning and inspecting, acrylic coating, dry lubricating, edging, hot-dipped galvanizing and galvannealing, hydrogen annealing, pickling, slitting, temper rolling and tension leveling. Worthington Steel also has a technical team in its metallurgical laboratory equipped to assist customers on site and in product testing.

About Gibraltar Strip Steel
Gibraltar Strip Steel is a precision processor of cold rolled strip steel for the automotive, appliance, power and hand tool, hardware and other end markets. The business includes flat-rolled products focused on value-added process and services. Gibraltar’s rolling mills allow for a tailor-made product to exacting customer requirements including precision-thickness tolerances, specific tempers, and specialized finishes, and Ebner annealing furnaces. Gibraltar serves the major domestic automakers and their suppliers, as well as major “transplant” manufacturers such as Honda, Toyota and BMW. The business has also been selected as the primary supplier of processed steel by the Royal Canadian Mint, used in Canadian currency.

About Worthington Industries
Worthington Industries is a leading diversified metals manufacturing company with 2009 fiscal year sales of approximately $2.6 billion. The Columbus, Ohio based company is North America’s premier value-added steel processor and a leader in manufactured metal products such as light gauge steel framing for commercial and residential construction; framing systems and stairs for mid-rise buildings; pressure cylinders products such as propane, oxygen and helium tanks, hand torches, camping cylinders, and scuba tanks; current and past model automotive service stampings; metal ceiling grid systems; steel pallets and racks; and laser welded blanks. Worthington employs approximately 6,300 people and operates 62 facilities in 11 countries.