GRAND RAPIDS — A subsidiary of one of the largest Japanese trading companies has expanded its footprint into the eastern United States with the strategic acquisition of Magic Steel Sales LLC.
The Grand Rapids-based steel service center was acquired by SteelSummit Holdings Inc. of Nashville, Tenn., according to a statement.
Current CEO Joe Maggini founded Magic Steel Sales in 1974 and the company operates service centers in Grand Rapids and Decatur, Ala. With approximately $200 million in annual sales, Magic Steel Sales has become a leading supplier of cold rolled, hot rolled, and coated slit steel products to customers in the eastern U.S.
The acquisition will add new markets and geographic diversity “with minimal customer overlap,” Todd Rollins, CEO of SteelSummit, said in a statement.
“It will provide SteelSummit an excellent platform for future strategic growth,” he added.
SteelSummit also has locations in Nashville, Cincinnati and Chicago with sales of approximately $600 million. The Company has three affiliated metals processing operations in Mexico and a flat-rolled metals sales office in Toronto, Canada. It operates as a subsidiary of Tokyo-based Sumitomo Corp.
Terms of the all-cash deal were not disclosed.