The all-cash purchase closed on Jan. 2 and is immediately accretive. Terms of Olympic Steel’s second acquisition in nine months were not disclosed.
McCullough Industries, located in Kenton OH, manufactures and sells branded self-dumping hoppers used in a variety of industrial applications and primarily sold through industrial distributors and catalogs.
“The McCullough acquisition marks our entry into manufacturing and marketing metal-intensive branded products, which is a key element to our long-term growth strategorgey,” said Richard T. Marabito, Olympic Steel’s chief executive officer. “Vertical integration into manufacturing metal products allows us to utilize our existing assets and expertise to more consistently capture higher profit from the point of raw material purchase through the ultimate sale to the end customer.”
McCullough and Wright branded containers are constructed from carbon and stainless steel, and the hoppers are produced in a variety of configurations. Easily transported, they are used for storing, handling, recycling and transporting materials used in construction, food service, and landscaping applications.
The self-dumping hoppers also can be fitted with feeding devices and integrated into manufacturing processes and assembly lines for scrap and liquid waste collection, the company said.
“We are pleased that Stephen McCullough has entrusted Olympic Steel to build on the success and values of the company founded in 1965 by his father, Wright McCullough,” Marabito said. “We look forward to synergistically adding purchasing, metal processing and logistical advantages provided by our service center platform to enhance the already strong financial performance of the business.”
The products will continue to be manufactured in Kenton by the existing workforce, Olympic said.
In conjunction with the acquisition, Olympic Steel veteran Joseph Casey was named general manager of McCullough Industries.