Reliance Steel Expands in Energy Market With Sunbelt Steel Buy

By IndustrialsFOXBusiness

Reliance Steel & Aluminum (NYSE:RS) agreed to buy privately-held Sunbelt Steel Texas on Wednesday in an effort to grow its exposure to the energy market.

Terms of the deal were not disclosed.

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Founded in 1986, Sunbelt distributes special alloy steel bar and heavy-wall tubing products to the oil and gas industry. The Houston-based company recorded 2011 sales of $48 million.

"Sunbelt increases our growing exposure to the energy market in high end, niche products serving customers across multiple oil and gas well drilling types,"  Reliance CEO David Hannah said in a statement.

Reliance will now be able to serve customers across vertical, horizontal, directional, and deepwater drilling categories.