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| SPS Companies |
Major Service Center Companies Unite
SPS Companies Inc. and State Steel have announced a merger of their service center businesses under the SPS Companies umbrella. This strategic partnership brings together North America’s 15th and 38th largest service center companies, as ranked in Metal Center News’ most recent Top 50 list.
State Steel will operate as an independent business unit, with David Bernstein continuing in his role as president. Bernstein will also become an SPS shareholder and join the company’s board of directors. The scrap business Sioux City Compressed Steel and Kooima ownership, retained by the Bernstein family, will not be included in the transaction.
A Natural Fit
The collaboration between SPS and State Steel builds on their joint acquisition of Kooima Company’s job shop operations in 2019. “Through our work with SPS on Kooima, it became clear that SPS is a highly logical fit,” said Bernstein. “Both companies are private and share similar cultures, valuing team members and customers alike.”
SPS CEO Matt Crocker expressed gratitude for the partnership, saying, “We are honored that the Bernstein family has entrusted SPS to continue the legacy of their business.”
Seamless Transition and Future Growth
Bernstein emphasized that customers will experience a seamless transition, with the same sales contacts and commitment to quality products and services. SPS’s corporate structure is expected to provide a strong foundation for the State Steel business model to grow and thrive, leveraging synergies within a top-tier organization.
SPS, headquartered in Manhattan, Kansas, operates steel distribution and fabrication facilities across 11 U.S. states and Monterrey, Mexico. State Steel, based in Sioux City, Iowa, runs operations in six cities across the upper Midwest.
Advisory Roles
SPS was advised by Montrose Advisors, LLC and Weary Davis, LC, while State Steel was represented by Stout Risius Ross, LLC and Katten Muchin Rosenman LLP.
