Flack Steel Acquires Non-Physical Assets of CMP
Flack Steel has closed the deal on acquisition of selected assets of Consolidated Systems, Inc.’s(CSi) Consolidated Metal Products (CMP) business. The acquisition expands Flack Steel’s penetration into the bare and painted hot-rolled and cold-rolled carbon steel, galvanized, stainless steel and aluminum markets. CMP provides metal processing for construction, transportation, HVAC, lighting, appliance andother OEM industries.
The deal with CSi includes the working capital and nonphysical assets of CMP including the tradename, Consolidated Metal Products. CMP President Brad Pemberton will join FlackSteel as part of the acquisition. Flack Steel will also absorb the approximately 25 employees operating in the Columbia, S.C., office, bringing their purchasing, sales, quality and marketing expertise to Flack.
The acquisition will benefit the sales and purchasing capabilities of Flack Steel, expanding the company’s product range and customer base as well as providing new supply sources and streamlined logistics.
Flack will also offer proprietary financial hedging that gives customers long-term pricing and protection against price fluctuation.
“Adding CMP allows us to expand our geographic & product reach while capitalizing on synergies between our network of processing partners,” said Jeremy Flack, CEO of FlackSteel Ltd. “This gives us the ability to offer our current and new customers awider range of products and hedging solutions on the Flack platform.”
Flack Steel will work with toll coater Precoat Metals, which has acquired the physical coil coating and processing assets of CMP, during the transition of customers. Precoat now has 16 coating and processing lines in 14 locations across the U.S.
Aaron Schultz, Chief of Staff at Flack Steel, called the synergies of combining the technical, sales and purchasing competencies of the companies a kind of “cross pollination” that will benefit all concerned.
This is the second significant expansion for Flack Steel in the past two years. In 2013, the company merged with GlobeNet Metals LLC to form an innovative steel sales model. This latest acquisition is expected to raise Flack Steel’s consolidated annual revenue to over $300 million.