Reliance Inc (NYSE: RS) said earlier this week it had acquired all the outstanding equity interests of Mid-West Materials Inc, a premier flat-rolled steel products provider.
The company did not disclose any financial details of the agreement.
The current management team will be retained, Reliance said.
”The addition of MidWest Materials increases our flat-rolled presence in the critical markets in and around Ohio which primarily service North American OEMs. MidWest Materials aligns well with our acquisition criteria of a well-run company that is immediately accretive to our earnings and expands our offerings to customers with modern, high-performance processing capabilities,” Karla Lewis, President and Chief Executive Officer of Reliance, said in a press release.
”MidWest Materials’ emphasis on superior customer service and its strong reputation for quality products strongly correlates with the Reliance model. MidWest Materials will benefit from our scale as well as access to capital for investments in value-added processing capabilities and the knowledge base and breadth of expertise throughout our extensive family of companies.”
Stock Performance
The shares of Reliance Inc (RS) closed 1.12% ($3.76) higher at $340.04 in New York on Friday, as they reversed a loss from the previous market session.
The company’s total market cap now stands at $19.527 billion.
The shares of Reliance Inc (RS) went up 38.15% in 2023, compared with a 10.99% gain for the benchmark index, NYSE Composite (NYA).
The company’s shares have risen 21.58% so far this year.
Analyst stock price forecast and recommendation
According to TipRanks, at least 3 out of 4 surveyed investment analysts had rated Reliance Inc’s stock as “Buy”, while 1 – as “Hold”. The median price target on the stock stands at $356.75, which translates into a 4.91% upside compared to the closing price on Friday.
The high point of the analyst forecast range stands at $362.00.
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