Synergy Progress Explained
Two companies, one goal and $50M+ in synergies in six months. Learn how we track our progress and how you can help us go even further in 2027.
When the idea of a merger was being discussed, Ryerson and Olympic Steel knew that two strong companies coming together would be even stronger as a single company. And as we’re working on synergies, we’re proving that fact.
Since Ryerson and Olympic Steel merged in February, the teams have been working together to be more efficient and utilize best practices across the Ryerson Family of Companies. We’ve shared a few stories about teams and systems and have given an overview of synergy progress with each Webcast and Town Hall this year. Let’s talk more about how we’re measuring and tracking progress.
Synergy Success
Two synergy goals were established at the beginning of the merger:
- $40M in synergies within one year of the merger (February 2027)
- $120M in synergies at the two-year mark (February 2028)
Six months into the merger, we’ve already exceeded our one-year goal by achieving more than $50M in synergies.
To help us focus our efforts and track our progress, synergies are divided into four categories:
- Procurement: Lowering costs by combining our buying power. Because we now buy on a larger scale, we can negotiate better prices, terms and supplier rebates (money returned to us by suppliers).
- Efficiency Gains: Savings from no longer paying twice for the same thing. As one company, we can eliminate duplicate costs that came from each of us operating as separate public companies. Examples: Teamwork in Tulsa and Sharing Resources
- Commercial Enhancements: Increased sales due to a larger footprint, being closer to customers, more transactions and shared capabilities all help us win more business. Examples: Growing Business in Hickman and Coast to Coast
- Network Optimization: Making better use of our locations and equipment. This means reducing what we spend on outside processing by redirecting that work within our network, maximizing equipment capacity and throughput, and consolidating facilities. Examples: Coming Together in Monterrey and Sharing Resources
What It Means for You
Each of us can contribute to the progress we’re making. Especially at the end of the year while we’re reviewing our 2026 performance, give some thought to how your team can make adjustments and work with partners across the Ryerson Family of Companies to implement additional synergies in 2027.
If you’re ready to share an example of ways you or your team have lowered costs, combined resources, eliminated expenses, increased sales, maximized equipment capacity or more – send those details to a member of the Communications Team at Rynet@Ryerson.com or CompanyCommunications@olysteel.com so we can share your story.
