Above: Claus Gundlach led the acquisition, which was completed in February 2024.
Joel Elbaum carved out a niche within a niche—heavy carbon plate.
August, 2024- Family. It’s one of the first words on the overview page of Ranger Steel Services’ website. It alludes to customers being treated like family at this 66-year-old distributor of carbon steel plate. The same holds true for employees. “We have long-term employees with minimal turnover in personnel, and our employees feel they have an ownership stake in the business. They want to make it successful,” says Claus Gundlach, CEO.
In February 2024, Ranger Steel expanded its employee base and product portfolio with the acquisition of Nance Steel Sales. The result is what Ranger Steel claims is the largest privately owned steel plate distribution center in the United States, offering plate in thicknesses from 3/16 inch to 24 inches.
PHOENIX RISING
The acquisition is a major development for Gundlach, who assumed the Ranger Steel helm in February 2019 following the untimely death of Ron Whitley, the company’s longtime CEO. Ron’s father, Roy Whitley, founded the Houston-based company in 1958. Under the Whitley family’s leadership, locations were added in Tulsa, Fort Worth and the Los Angeles Basin.
Gundlach was hand selected to lead the business after the tragedy. It was a logical choice, rooted in friendship. For more than 30 years, Gundlach and Ron Whitley had traveled the world sourcing carbon plate for the growing Texas business.
“After the fall of the Iron Curtain [symbolized by the dismantling of the Berlin Wall in 1989], steel markets opened up in Eastern Europe and Asia. We traveled to Poland, Romania, the Czech Republic, Ukraine, Russia and all the way east to China to buy steel plate,” recalls Gundlach. Whitley was there representing the interests of Ranger Steel, while Gundlach was with Klöckner International Trading, which offered the financing, logistics, insurance and other necessary customs and administrative support for global transactions.
From these shared experiences, Gundlach and Whitley developed a close friendship. “The history I had with Ron, his family and the Ranger family triggered me to say ‘absolutely’ when I was approached about the CEO position,” notes Gundlach.
Combined, the businesses have an expanded geographic footprint and a wider range of carbon plate, including odd dimensions and less common grades.
A NICHE WITHIN A NICHE
While Ranger Steel was importing steel, so too was Joel Elbaum, an original founder of Nance Steel Sales. (The Nance name originated after a coin toss between Elbaum and an early partner who won the toss and gave the business his first name.) On buying tours and at industry events, Elbaum frequently crossed paths with Gundlach and Whitley. “Claus is a renowned guy in the steel business; his knowledge of the global steel market is a fantastic asset,” explains Elbaum.
The Nance Steel team was carving out a niche within a niche, specializing in heavy plate (up to 24 inches thick), odd dimensions and unusual grades for their customers who process steel to build locomotives and heavy presses, among other heavy duty components.
Since the acquisition, Ranger Steel Services and Nance Steel Sales offer heavy plate up to 24 inches thick.
“We also support service centers that buy stock from us when the mill lead times are long,” says Elbaum. “We stock what our competitors don’t stock.” A natural-born salesman, Elbaum claims he would “buy anything that wasn’t nailed down” to grow the business and support his customers.
Speed was—and continues to be—a big asset for Nance Steel. “We have a broad inventory of steel on the ground and available. When you need it, you need it. That’s the void we fill,” notes Elbaum.
A MIDWEST PRESENCE
Shortly after Gundlach stepped into the offices of Ranger Steel, Nucor Steel announced its investment in the plate mill in Brandenburg, Kentucky. “At the Kentucky mill, Nucor was planning size ranges that no other mill was able to produce. And the mill was close to the Midwest,” says Gundlach, who was looking for growth opportunities for Ranger Steel. He could keep growing the business organically or he could grow by acquisition.
Gundlach was reminded of Elbaum—a plate distributor with a similar culture of family values and locations in the Midwest. Elbaum had expanded the Nance Steel business from its early days in Detroit to other stocking locations in Chicago, Houston and East Liverpool, Ohio. There were other similarities. Nance Steel was founded 13 years after Ranger Steel. It, too, was family owned and had a long track record of low employee turnover and loyal customers.
Gundlach approached Elbaum about a possible acquisition. “Of course, we looked at the numbers. In its 53-year history, Nance Steel had only one year where it recorded a loss. During our due diligence, we confirmed what we wanted to see,” Gundlach recalls.
HAND IN GLOVE
It was a perfect fit. Ranger Steel’s portfolio is tilted to the 3/16-inch to 4- inch thickness range, with a focus up to 3 inches. “About 85 percent of steel plate consumption is in this range,” says Gundlach. Nance Steel’s gauge range goes larger, providing plate up to 24 inches thick for specific markets. Depending on grade, Nance Steel stocks widths up to 150 inches and lengths up to 600 inches. “Where Ranger stopped, Nance started,” Gundlach notes.
“The acquisition gives us locations closer to Nucor’s plate mills and access to a broader range of product sizes,” explains Gundlach. The acquisition, inked earlier this year, also expands the Ranger Steel reach into a key geographic market, where Gundlach notes there is a greater concentration of heavy plate sales than in the South or Texas.
Since the merger, business proceeds apace. Both the Ranger Steel and the Nance Steel management teams are pleased. “Nance Steel customers welcomed the acquisition and easy access to more steel with open arms,” notes Sam Buscemi, a 30-year owner, alongside Elbaum, of Nance Steel. Buscemi and Elbaum both agreed to stay on for a period of time, mostly in a sales capacity. “Selling is the easiest thing I’ve ever done in my life,” quips Elbaum.
And the employees are coming together, forming a larger family. “I know that word ‘family’ gets overused in the business sphere. But for our team, it really feels like family. We’ve been through some emotional and challenging times, which bind us closer,” says Gundlach.
The result is a larger footprint and broader portfolio for a growing number of customers. “Ranger Steel and Nance Steel it’s a good match and a good mix,” notes Elbaum.
Nance Steel Sales, 800/521-5937, http://nancesteel.com/
Ranger Steel Services, 800/231-5014, http://rangersteel.com/
