Reliance Steel to Purchase Pennsylvania Firm

Reliance Steel & Aluminum Co., a Los Angeles-based metals processor and distributor, said it will buy closely held Allegheny Steel Distributors Inc. to begin selling steel in the Pittsburgh area as the industry consolidates. Terms of the transaction, expected to close in 30 days, weren’t disclosed. Allegheny Steel, based in Indianola, Pa., near Pittsburgh, specializes in cutting to length and blanking of primarily carbon steel products. It had sales of $31 million last year. The purchase will bring to 16 the number of companies Reliance has acquired since in went public in 1994. Buying Allegheny allows Reliance to expand its network in the Pittsburgh area. When the purchase is completed, Reliance will have 68 facilities in 21 states and France. It had sales of $1.35 billion last year. Reliance shares rose 6 cents to close at $34.94 on the New York Stock Exchange.. Its shares have risen 11% in the last 12 months.