Company: ZEUS
Filing Date: 2025-10-29
Form Type: 425
Source: 0001193125-25-256374
Chunk: 14

Company: OLYMPIC STEEL INC
Filing Date: 2025-10-29
Form: 425
Chunk 14
---
 we talked about before on having spent a lot of
capital to so we’re entering into this from really a position of strength where we don’t have big CapEx needs. So we can really focus on growth, whether it’s M&A or whether it’s on the internal investment side of the
equation. So I just think it’s another exciting piece of the way the two companies are coming together at this point in our history. As well as the structure of the deal, again by being an all-stock
transaction. Eddie?

Edward Lehner: Hey. Thanks, Rick. And just to follow up on some of the points that Rick made, when you look at things like - and
avoidance is maybe not a great word, but we’ll stay with it. When we look at CapEx avoidance, when you come through two investment cycles that Ryerson and Olympic have had over the last three years, given the quality of the assets, given the
magnitude of the assets, now we have the opportunity even to think about how do you move things around, how do you beneficiate assets, how do you how do you repurpose assets? So one of the things you noticed in our earnings release was our
depreciation expense is about $19 million in the quarter. If you think about what our normalized CapEx run rate is, depreciation should really be between $13 and $14 million in the quarter, which is about $0.16 to $0.18 EPS.

So one of the ways that we envision EPS accretion is, is we don’t have to spend as much CapEx as a combined organization, not just
gearing down from the CapEx we’ve had over the last three years, but really looking at what is really - what is the right normalized rate of CapEx going forward as a combined organization? And how much depreciation then do you book over time
against that CapEx as you add to the balance sheet, but you also optimize the asset footprint that you have. So moving then to the benefits of scale and scope. And I think Katie[?] in her note, I mean, I think she summarized it really well.
It’s scale and scope within a highly fragmented space.

I mean, trivia question for everybody. Can anybody remember what the last
transaction was of any significance? You’d have to go back to 2013 for the Reliance Metals USA transaction. And then a better trivia question that I won’t give you the answer to, even though I know it