Reliance Sells Canadian Assets

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Reliance Steel & Aluminum Co. said Monday that it has sold the coils division of its subsidiary Encore Group Ltd. to Samuel Son & Co. Ltd. for an undisclosed sum.


Encore Coils, which had sales last year of about $50 million, processes and distributes carbon steel flat-rolled products through five facilities in western Canada, Los Angeles-based Reliance said in a statement.


“The Encore Coils business did not fit well for us because we do not have any similar facilities nearby that could help support this relatively small business,” Reliance’s Chief Executive Dave Hannah said in a statement.


Reliance in February acquired Encore’s group of metals service centers, including Encore Metals, Encore Metals USA Inc., Encore Coils, and Team Tube in Canada. Reliance said it will retain the Encore Metals and Team Tube divisions of the Encore Group.


“The most important part of the Encore Group to us is its specialty metals business, (and) the sale of the Encore Coils business allows us to exit this market without disrupting the Encore Coils customer base,” Hannah added.


Shares in Reliance dipped 4.4 percent in early trading Monday on the New York Stock Exchange.

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