The trend toward consolidation in the fragmented metals distribution industry gained momentum Tuesday when Franklin Park-based A.M. Castle & Co. announced that it’s acquiring Keystone Tube Co.
Chicago-based Keystone, a privately held and predominantly regional Midwest distributor of fluid-carrying tubes and similar products, had sales of $45 million last year.
Terms of the transaction were not disclosed.
Castle, a national distributor of premium metal products, has been expanding rapidly and last year branched into plastics with the acquisition of Total Plastics Inc.
Other recent acquisitions included Cutter Precision Metals and Kreher Steel Co., a joint venture to distribute specialty metal bars.
Rival Ryerson Tull Inc., based in Chicago, also has been expanding and in February bought Thypin Steel Co. Inc., a distributor on the East Coast. Ryerson was partially spun off last year by Inland Steel Industries Inc., which still owns a majority of its stock.
Metal distributors take bulk metal slabs and coils from the mills, cut them into usable shapes and sizes and distribute them to manufacturers.
