Metals USA of Houston, the fourth largest metals service center chain, has reconsidered an earlier strategy and decided to sell five specialty products service centers. In addition, the company will integrate the operations of eight smaller facilities into larger facilities. For sale are facilities in Santa Monica, Calif. (titanium), St. Louis (tool steels), Broadview, Ill., and Hazel Park, Mich. (aluminum, copper, brass and stainless products), and Salisbury, N.C.(bronze and ductile iron). For the 12 months ending June 30, the businesses being sold had combined revenue of $135 million.

CEO Michael Kirksey says uncertain projections for a metals turnaround, the need to shore up core assets, and a lack of critical mass in the specialty segment prompted the divestiture plan. "Originally, we had the strategy to build a large specialty metals segment as the fourth leg of our stool," he says, "but we were unable to find enough viable acquisition candidates so it was always a smaller operation without critical mass to be a player."

The three remaining legs of Metals USA's stool are carbon steel plate and shapes; carbon and stainless steel, aluminum and copper sheet; and fabricated products for construction.