Message #18 From:
NewsBot Date: December 28, 2006 05:50:00 AM
RS News Reliance Steel & Aluminum Co. Signs Agreement to Acquire Encore Group
LOS ANGELES--(BUSINESS WIRE)--Reliance Steel & Aluminum Co. (NYSE:RS) announced today that it has
reached an agreement to acquire the net assets and business of the
Encore Group of metals service center companies (Encore Metals, Encore
Metals (USA), Inc., Encore Coils, and Team Tube) headquartered in
Edmonton, Alberta, Canada. Encore was organized in 2004 in connection
with the buyout by management and a private equity fund managed by HSBC
Capital (Canada) Inc. of certain former Corus CIC and Corus America
businesses. Encore specializes in the processing and distribution of
alloy and carbon bar and tube, as well as stainless steel sheet, plate
and bar and carbon steel flat-rolled products, through its 17 facilities
located mainly in Western Canada. Encore’s net
sales for the twelve months ended December 31, 2005 were C$254.8
million. Current management is expected to remain in place. The
transaction is expected to be finalized during the first quarter of
2007, subject to the completion of due diligence and regulatory
approvals. Terms were not disclosed.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California,
is one of the largest metals service center companies in the United
States. Through a network of more than 160 locations in 37 states and
Belgium, Canada, China and South Korea, the Company provides value-added
metals processing services and distributes a full line of over 90,000
metal products. These products include galvanized, hot-rolled and
cold-finished steel; stainless steel; aluminum; brass; copper; titanium
and alloy steel sold to more than 95,000 customers in various industries.
Reliance Steel & Aluminum Co.’s press
releases and additional information are available on the Company’s
web site at www.rsac.com. The
Company was named to the 2006 Fortune 100 Fastest Growing Companies
List and the Forbes Platinum 400 List of America’s
Best Big Companies.
This release may contain forward-looking statements relating to future
financial results. Actual results may differ materially as a result of
factors over which Reliance Steel & Aluminum Co. has no control. These
risk factors and additional information are included in the Company’s
reports on file with the Securities and Exchange Commission.
