S&T to Acquire MSL Also Known as Fortress Fasteners

Steel & Tube Holdings Ltd (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 iconic Fortress brand was introduced in 1997 and has become a market leader with 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, providing outstanding steel solutions to construction, manufacturing and rural businesses throughout the country. Together we can deliver even more innovative products and offerings to our combined customer base. 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 $32 million, $26m in cash and $6m shares in S&T (subject to any adjustment under the sale and purchase agreement). The transaction is conditional on normal pre-completion matters and S&T expects completion to occur within about 6 weeks. Mr. Taylor added: “This is all about growing, innovating and competing in a rapidly changing market.”

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.