Cargill to acquire Robinson's RPS® Steel division
Date: Dec. 16, 2009
Media Contacts:
David Feider, (952) 742-6910, david_feider@cargill.com
Sharon Moore, (219) 398-4600, smoore@robinsonsteel.com
MINNEAPOLIS and EAST CHICAGO, Ind. - Cargill, a leading global trader, processor and distributor of iron and steel, has agreed with Robinson Steel to increase its investment in RPS® Sheet and Plate by purchasing Robinson Steel's cold-reduction lines in East Chicago, Ind., and Granite City, Ill. Cargill will take 100-percent ownership of Cargill Robinson LLC, a joint venture formed by Cargill and Robinson in 2007. The transaction is expected to be completed in the next 45 days. Robinson Steel will continue as an independent owner and operator of its RPS® Laser division, the market-leading, precision-cut steel parts supplier, with Cargill as its exclusive supplier of RPS® quality sheet-and-plate products. Terms were not disclosed.
"RPS® solidifies our premier position in the processing of hot-rolled steel bands into the highest quality sheet-and-plate products to meet our customers' needs, and it complements our broader investment in steel as a leading global trader, processor and distributor," said Mike Taylor, president of Cargill's steel service center business.
"Our expanded relationship with Cargill will allow Robinson's RPS® Laser to continue to integrate our unique value proposition with Cargill's global supply chain and risk management capabilities, accelerating our growth and geographic reach. It will clearly provide increased cost-effective value to our customer base," said Paul Labriola, president and chief executive officer of Robinson Steel.
Cargill currently operates seven flat-rolled steel service centers with over 245 employees, focusing on hot-rolled band, pickled and oiled, cold-rolled, and tin mill products. Locations include East Chicago, Ind.; Houston, Texas; Tulsa, Okla.; Panama City, Fla.; Loudon, Memphis and Nashville, Tenn.
Robinson Steel Co., Inc currently operates steel and laser-cutting facilities in Indiana, Illinois, Iowa, Missouri, and Alabama.
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About Cargill
Cargill is an international provider of food, agricultural and risk management products and services. With 159,000 employees in 68 countries, the company is committed to using its knowledge and experience to collaborate with customers to help them succeed. For more information, visit http://www.cargill.com.
About Robinson Steel
Headquartered in East Chicago, Ind., Robinson Steel Co., Inc. is an innovative manufacturer and distributor of RPS® Laser Cut Parts and RPS® Sheet and Plate from 8 locations throughout North America. For more information, visit http://www.robinsonsteel.com.
