Stockholder Barrett Steel has acquired distribution sites and a bright bar facility owned by troubled business Aartee Bright Bar for £13 million, saving more than 170 jobs.
But a hot-rolled site in Dudley has not been included in the sale, costing 45 roles and the closure of the plant.
The acquisition from administrators encompasses Aartee Bright Bar's distribution businesses in Rugby, Bolton, Newport and Southampton and its bright bar facility operating out of Willenhall in the West Midlands.
The buyout deal also includes Aartee Bright Bar Property's freehold and leasehold interests at these sites.
The acquired sites will now trade as Barrett Engineering Steel Rugby, Barrett Engineering Steel Bolton, Barrett Engineering Steel Newport and Barrett Engineering Steel South.
Bradford-based Barrett Steel operates a number of steel stockholding companies and divisions across the UK, serving customers worldwide, and this rescue deal has added 173 employees to the group.
It sees the growth of the sixth-generation family business' network to 35 locations across the UK and provides Barrett Steel with an ideal base to further service and support to customers in the Midlands, South West, North West and Wales.
Chief executive Andy Warcup said: "This acquisition will add to the strength and capabilities of our existing engineering steel businesses so that we are able to deliver exceptional service to our customers. We are excited to welcome the Aartee team to our group."
Administrators from Alvarez & Marsal were appointed Aartee Bright Bar and Aartee Bright Bar Property in February.
A judge ruled last week that Aartee Bright Bar's immediate UK holding company, Aartee Steel Group, should be put into compulsory liquidation.
Aartee Bright Bar was closely linked with metal tycoon Sanjeev Gupta and his GFG Alliance division which runs Liberty Steel.
Shortly after the appointment of administrators, GFG Alliance bought Aartee Bright Bar's owner Aartee Group Pte and filed an application to challenge the administration but ultimately failed in its bid to rescue the company.
Joint administrator Michael Magnay said: "This substantial investment from Barrett Steel is a vote of confidence in the business and the wider UK steel industry.
"The companies' creditors will now receive a substantial dividend and will have the opportunity to trade with the new business going forward.
"We are grateful to the employees and creditors for their support and understanding during this process, and to Barrett Steel for its commitment to the deal."
Law firm DWF advised Barrett Steel on the deal.
