US steel service centre chain Reliance Steel and Aluminum has bought the outstanding 40% ownership interest in Mexican toll processor Acero Prime, Kallanish understands.
The financial terms of the transaction were not disclosed. Reliance already held a 60% interest in the company before acquiring the remaining shares from joint venture partner US Steel.
Acero Prime operates four toll processing facilities in Mexico.
“Acquiring the remaining ownership interest in Acero Prime supports our capital allocation strategy of investing in high return opportunities that enhance our long-term earnings potential,” says Reliance ceo Gregg Mollins. “Our toll processing businesses are strong performers that provide high levels of value-added processing, and we believe complete ownership will allow us to more fully support volume growth in important end markets such as automotive.”
Reliance received a 40% share in Acero Prime when it acquired PNA Group in August 2008, and bought an additional 20% in October 2014.