Steel & Tube Expands with Acquisition of Leading Corrosion Protection and Grating Experts
Steel & Tube Holdings Limited has made a strategic move to acquire three major New Zealand-based businesses: Perry Metal Protection, Perry Grating, and Waikato Sand Blasting. This acquisition brings specialized expertise in corrosion protection, grating products, and sandblasting services, allowing Steel & Tube to further diversify its product offerings and strengthen its position in the industrial and commercial sectors.
Perry Metal Protection: Corrosion Protection Leaders
Perry Metal Protection is New Zealand’s leading corrosion protection and treatment company, commanding a dominant 44% market share in hot dip galvanizing, a process that involves coating metals with zinc to prevent corrosion and oxidation. This treatment extends the life of metal products, particularly steel, by creating a durable, long-lasting protective layer. Steel is already a highly sustainable and recyclable material, and galvanizing further enhances its durability and performance in a variety of industries.
By acquiring Perry Metal Protection, Steel & Tube gains access to a critical value-added service that is both highly specialized and less cyclical than other parts of the business. This acquisition also aligns with Steel & Tube's strategy to broaden its portfolio and cater to the growing demand for corrosion-resistant solutions, which is an important aspect of sustainable construction and infrastructure projects.
Perry Grating: Leading Supplier of Industrial & Commercial Grating
In addition to corrosion protection, the acquisition includes Perry Grating, a leading supplier of grating products used in industrial and commercial construction projects. These products are essential for applications such as flooring, stair treads, drain covers, mezzanine flooring, and trenches. Custom fabrication ensures that products meet the specific needs of each project, making Perry Grating an important supplier for large-scale construction works.
This acquisition allows Steel & Tube to enhance its product mix by adding another high-quality offering for industrial and commercial construction. The grating business is a natural extension of Steel & Tube's existing product range and will provide new revenue streams as demand in the commercial construction sector rebounds.
Waikato Sand Blasting: High-Quality Blasting Services
Another key component of the acquisition is Waikato Sand Blasting, which specializes in high-quality blasting services for a wide range of items, including structural steel, heavy equipment, and vehicles. Sandblasting is a crucial process in the preparation and cleaning of metal surfaces, and Waikato Sand Blasting’s services are widely recognized for their quality and reliability.
With this addition, Steel & Tube can expand its service offerings to include a comprehensive range of surface treatment options, allowing the company to provide even more value to its customers in the manufacturing, construction, and industrial sectors.
Strategic Fit and Market Impact
The Perry Group businesses are a natural fit for Steel & Tube, bringing synergies that will help improve operational efficiencies and provide new opportunities for growth. With strong national reach, well-established brands, and a solid reputation in the industry, these businesses align closely with Steel & Tube's existing customer base, making the integration process smoother.
The acquisition also strengthens Steel & Tube's position as a leader in the industrial services sector. By adding new capabilities in corrosion protection, grating supply, and sandblasting, Steel & Tube can offer a more comprehensive suite of products and services to its existing and new customers. This strategic move will enable the company to cater to a wider range of industrial needs, enhancing its competitiveness in the market.
Focus on Growth and Innovation
Growth is a key part of Steel & Tube's long-term strategy, and this acquisition reflects the company’s ongoing efforts to expand its product and service offerings. Over the past four years, Steel & Tube has successfully invested in a number of new products and solutions, and the addition of the Perry Group businesses is another step toward achieving its goal of continuous growth.
Steel & Tube’s commitment to expanding its high-value processing solutions is evident in this acquisition, as the company seeks to capitalize on the increasing demand for specialized services in industries such as construction, manufacturing, and infrastructure.
Transaction Details and Future Plans
The acquisition is conditional, with the transaction expected to complete in May 2025. Steel & Tube has provided additional details regarding the acquisition in its recent half-year results announcement, signaling the company’s confidence in the long-term value these businesses will bring.
With the Perry Group’s well-known brands and expertise in corrosion protection, grating products, and sandblasting services, Steel & Tube is poised to expand its reach and enhance its product offerings, ensuring continued growth in the coming years.
Key Takeaways:
• Strategic Acquisition: Steel & Tube has announced the conditional acquisition of Perry Metal Protection, Perry Grating, and Waikato Sand Blasting, expanding its portfolio with expertise in corrosion protection, grating products, and sandblasting services.
• Corrosion Protection Leadership: Perry Metal Protection holds a 44% market share in New Zealand's hot dip galvanizing market, providing vital corrosion protection services to extend the life of steel and other metals.
• Grating Products Expansion: Perry Grating is a leading supplier of industrial and commercial grating products, essential for applications like flooring, stair treads, and mezzanine flooring.
• Sandblasting Services: Waikato Sand Blasting offers high-quality sandblasting services, specializing in cleaning and preparation of structural steel, heavy equipment, and vehicles.
• Increased Product Offering: The acquisition expands Steel & Tube’s product range and adds new high-value processing solutions to its portfolio.
• Growth Strategy: Steel & Tube continues to focus on growth and diversification, with successful investments in new products and services over the past four years.
• Market Impact: The acquisition strengthens Steel & Tube's position in the market by providing access to high-demand services and new revenue streams from the corrosion protection and industrial sectors.
• Completion Date: The transaction is expected to complete in May 2025, adding Perry Metal Protection, Perry Grating, and Waikato Sand Blasting to Steel & Tube’s operations.
