Magic Steel Sales, a steel service center company headquartered in Grand Rapids, has been acquired by SteelSummit Holdings, a national metals service center and trading company in Tennessee. Terms of the deal were not disclosed.
“This acquisition is a perfect complement to our organization, as it adds new markets and geographic diversity with minimal customer overlap,” says Todd Rollins, CEO of SteelSummit. “It will provide SteelSummit an excellent platform for future strategic growth. We are very pleased that Joe and the Magic Steel leadership team has entrusted SteelSummit to build on the great success and values of the company he founded in 1974.”
Magic Steel has about $200 million in sales. It operates service centers in Grand Rapids and Alabama.
“Our strategic decision to hand over the reins of Magic Steel after 45 years will provide our company a great foundation for future success,” says Joe Maggini, founder and CEO of Magic Steel. “I would like to extend my thanks and gratitude to all past and present Magic Steel employees, customers, suppliers, and business partners. Without them, none of our growth and success would have been possible. The past ownership wishes SteelSummit and the Magic Steel family every success as they move forward.”
SteelSummit has sales of about $600 million, was founded in 1987, and operates metal service centers in Nashville and Cincinnati. It also has three affiliated metals processing operations in Mexico and a flat rolled metals sales office in Canada. The company’s global trading business is based in Chicago. Steel Summit is a subsidiary of Tokyo-based Sumitomo Corp.