Norfolk Iron & Metal to Acquire Cd’A Metals

NORFOLK, NE and SPOKANE, WA, December 15, 2020 — Norfolk Iron & Metal, Co. (“NIM”), a full-line steel service center, and The Coeur d’Alenes Company (Cd’A Metals), a full-line metal service center in the Inland Northwest, jointly announced that they have entered into a definitive agreement in which NIM will acquire Cd’A Metals. The transaction is expected to close on or before December 31, 2020.

The acquisition will complement NIM’s market coverage, adding three new locations in the Northwest, and further expand NIM’s product lines and processing capabilities. NIM first expanded its western geographic reach with its acquisition of Metalwest in 2018.

“We are pleased to welcome the Cd’A team members to the NIM family,” Richard Robinson, Chairman and CEO of NIM, said. “This investment represents a strategic opportunity to increase our capacity and geographic presence and is integral to our commitment to meet the growing needs of our customers. Cd’A Metals’ complementary capabilities combined with its long history of success positions us well to further develop our business in the northwestern markets.”

“It is a great opportunity for Cd’A Metals to join the NIM team,” said Lawrence Coulson, CEO of Cd’A Metals. “It was important that Cd’A Metals continue to be family-owned. Combining Cd’A Metals with NIM and Metalwest creates a family of companies that provides a broad geographic footprint, expanded processing capabilities and deep product offering ready to meet the growing demands of our customer base.”

Heritage Capital Group is serving as financial advisor, and Witherspoon Kelley is providing legal services, to Cd’A Metals. Abrahams Kaslow & Cassman LLP is acting as legal counsel to NIM.

About Cd’A Metals
Cd’A Metals is a full-line metal service center and supplier, headquartered in Spokane, Washington. With three locations across the Inland Northwest, the company provides bar and structural steel, plate and sheet products, as well as ornamental iron. Founded in 1884, Cd’A Metals has offered over a century of processing expertise to the metals industry and is a member of the Metal Service Center Institute (MSCI) and the North American Steel Alliance. For more information, visit www.cdametals.com.

About Norfolk Iron & Metal
Norfolk Iron & Metal, Co. (NIM) is a full-line steel service center headquartered in Norfolk, Nebraska. It is one of the nation’s largest and most technologically advanced steel providers. In 2018, NIM acquired Metalwest, a leading processor and distributor of non-ferrous and carbon flat rolled metal products. With 13 locations across the U.S., NIM’s warehouses are stocked with more than 3,000 items including carbon steel beams, angles, channels, flat-roll sheet and coil, plate, and tubing. NIM has been a family-run business since 1908 and is a member of MSCI. For more information, visit www.norfolkiron.com.

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December 2020 Insight Guide: Market Indicators

The Economy

The U.S. economy is seen as more resilient than many people think. According to Rick Rieder, BlackRock’s CIO of global fixed income, there is potential for gains in parts of tech, consumer, cyclical areas such as industrials, as well as housing and some leisure sectors, with the expectation of a vaccine expected to boost service sectors.

He also does not expect inflation to rise strongly as he expects the Federal Reserve to push back from yields moving much higher.

The U.S. economy added 245,000 jobs in November, the fewest since April, while the unemployment rate fell to 6.7% as many people stopped looking for work and were no longer counted as unemployed.

Key Indicators

The Architecture Billings Index rose to a score of 47.5 in October, up slightly from September’s reading. This indicates that the share of firms seeing their billings decline shrank further (a score under 50 indicates a decline in billings).

The November Purchasing Managers Index registered at 57.5%, down 1.8 points from October. This indicates expansion in the overall economy for the seventh consecutive month, as a score above 50 represents expansion. The New Orders Index registered at 65.1%, down 2.8 points from the previous month. The Production Index registered at 60.8%, down 2.2 points from the previous month.

Consumer confidence declined in November as the Conference Board Consumer Confidence Index registered at 96.1, down from 101.4 in October.

Industry News

Buyers in the U.S. steel industry are pessimistic about their ability to secure tons in the beginning of the new year as limited supply is pushing prices up. HRC futures hit a yearly low of $447 per ton in August. However, the benchmark steel prices has since risen more than 80%. While domestic supply is currently tight, analysts expect it to to come back online during the first half of 2021.

Aluminum prices are  still rising, even as global production continues to increase. Much of the rise is due to a resurgent Chinese economic recovery, which drove strong domestic demand that the country has switched to becoming a net importer on key materials. Meanwhile, North American output reached 334,000 metric tons, up from 317,000 metric tons in the previous month and up from 316,000 metric tons the same time last year.

For more information, view the December 2020 Market Insight Guide below or contact your local sales representative.

Metalwest Market Insight - December 2020