Steel & Tube Holdings (S&T) has entered into an agreement to acquire the business and assets of Manufacturing Suppliers Limited and its related companies (MSL).
MSL is one of the largest fastenings businesses in New Zealand. Its Fortress brand was introduced in 1997 and has established a reputation for quality and reliability. S&T CEO Dave Taylor says: “The acquisition provides an excellent opportunity for our customers, offering them greater fastenings expertise and access to a wider range of products. It will strengthen our offering in the fastenings space and reinforce our position as New Zealand’s leading steel distribution company. Our customers will continue to see the Fortress Fasteners brand and the business will continue to operate under the name MSL.”
The consideration for the acquisition is USD 32M, USD 26M in cash and USD 6M shares in S&T. The transaction is conditional on normal pre-completion matters and S&T expects completion to occur within about six weeks.
This is the second acquisition that S&T has made in a little over 12 months, and continues its strategy of consolidation of key steel distribution sectors in NZ. S&T acquired Tata Steel Australasia in April 2014.