Worthington Acquires Gibraltar Strip Steel Assets

Feb. 2, 2010
Gains wider, lighter capability, plus transplant access

Worthington Industries has acquired Gibraltar Industries Inc.’s flat-rolled steel processing operation in Cleveland for an unreported price, and will combine it with its own Steel Processing business unit. It said the addition would enhance its cold-rolled strip business and its ability to serve new and existing customers.

Worthington Steel operates 15 facilities in the United States and Mexico. Its plants perform cold rolling of carbon and stainless steel, blanking, cutting-to-length, cleaning and inspecting, acrylic coating, galvanizing and galvannealing, annealing, pickling, slitting, temper rolling, and tension leveling.

Gibraltar’s plant processes strip that is wider and lighter than Worthington’s current product line. It supplies several transplant automakers, while Worthington’s operations are focused on the Detroit Three.

Also included in the transaction are the equipment and inventory of Gibraltar's Buffalo facility, and a warehouse facility in Detroit (Integrated Terminals). As it exits steel processing, Gibraltar will close the Buffalo plant and working with Worthington Steel to coordinate customer accounts as they are transferred to Cleveland and Columbus, Ohio.

Worthington also acquired a 31% interest in Samuel Steel Pickling, a Gibraltar joint venture with operations in Cleveland and Twinsburg, OH.

"This is an excellent growth opportunity for Steel Processing to add higher-margin business, while enhancing our capacity to serve existing customers, and new customers in new markets," stated Worthington Industries chairman/CEO John McConnell. "We are bringing together two leading steel processing companies well known for a commitment to high-quality products and superior customer service.”

Gibraltar, headquartered in Buffalo, will shift its focus to its building products line.

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