Steel Mills

Majestic Steel President Discusses Flat Rolled Steel, Inc. Purchase

December 22, 2013

Steel Market Update (SMU) communicated with Todd Leebow, President of Majestic Steel about their just announced purchase of Flat Rolled Steel, Inc. We asked him how the Flat Rolled Steel, Inc. will be handled, what it added to their company and what plans did Majestic have as they move into the Southwestern section of the United States.

He told Steel Market Update that the Flat Rolled Steel, Inc. organization is being absorbed into Majestic Steel and will operate under the Majestic Steel name.

There are two plants involved in the purchase. The Houston, Texas facility which encompasses approximately 150,000 square feet of warehouse space and the approximately 60,000 square foot facility in Grand Prairie (Dallas), Texas. Flat Rolled Steel, Inc. also had a sales office in Tulsa, Oklahoma.

The Flat Rolled Steel company owned multi-blanking and cut-to-length equipment which was used to process hot rolled pickled & oiled (HRPO), cold rolled, coated steels as well as prepainted steels. According to Todd Leebow, Majestic intends to expand the current product offerings and will expand into Stainless as well.

The main markets for Flat Rolled Steel were reported to be HVAC (heating, ventilation & air conditioning), construction, energy and equipment markets.

Mr. Leebow told Steel Market Update about the acquisition, “Allows us to expand our current business we do in the Southwest as well as consolidate the service center market in that region. We plan on maintaining ours and Flat Rolled’s existing business and have significant strategic growth plans as well.”

Leebow went on to state, “The only other thing I would say at this time is that we appreciate what Michael Bollman created and look forward to bringing Majestic to the Southwest as we continue to expand our presence in the Steel Industry as a leader and innovator in the market.”

Steel Market Update spoke with a couple competitors of Flat Rolled Steel, Inc. who considered the move into the Southwest market by Majestic Steel as a positive for the industry. Both companies with whom we spoke presented the case that Majestic Steel is a very knowledgeable company and could deal effectively with any ethical or misrepresentation issues which exist in the Southwest markets.

We also spoke with a couple of galvanized end users in the Texas area who told us they had bought from Majestic in the past but not within the past couple of years due to changes in the way the company handled freight. They were optimistic that Majestic would be good for the market – especially on some of the harder to get items such as 36” wide.