IRVING, Texas, April 12 /PRNewswire-FirstCall/ -- Commercial Metals
Company (NYSE: CMC), headquartered in Irving, Texas, announced today that
it has entered into a definitive agreement to purchase substantially all
the operating assets of Yonack Iron & Metal Co. and Metallic Industries,
LLC. Yonack operates scrap metal processing facilities in Dallas and
Forney, Texas; Stroud, Oklahoma and Lonoke, Arkansas. The assets will be
operated as part of the CMC Recycling segment (CMCR). Bob Yonack, President
and sole shareholder, will serve in a consulting capacity to CMCR following
closing of the transaction which is expected within 60 days.
"The acquisition of Yonack is an excellent fit with our existing metals
recycling facilities located in the area. Bob Yonack and his team have
successfully grown the business into a strategic force in Southwestern
markets. Both companies understand the importance of service to industrial
generators of scrap metal, and together we will become even better. We
expect this acquisition to be accretive to earnings in the first year and
to offer continuing opportunities for revenue gains and cost savings as we
fully integrate the operations," said Murray R. McClean, President and
Chief Operating Officer of CMC.
Alan Postel, CMCR President, added, "This addition brings to CMCR not
only significant scrap processing equipment including 1,200 roll off boxes
and containers with a modern truck fleet in tip top condition to service
industrial accounts, but also, and more importantly, an outstanding team of
well respected and energetic scrap metal professionals. We are excited to
have the opportunity to work together to expand the business and build on
Yonack's history of outstanding customer service."
Bob Yonack said, "CMC is admired throughout the metals industry, and I
am pleased that our employees will become part of such a fine organization.
Our existing customers can be assured of a continuing high level of service
from our key personnel which, combined with CMC's financial strength and
over ninety years of industry experience, will result in a seamless
transition."
Commercial Metals Company and subsidiaries manufacture, recycle and
market steel and metal products, related materials and services through a
network including steel minimills, steel fabrication and processing plants,
construction-related product warehouses, a copper tube mill, metal
recycling facilities and marketing and distribution offices in the United
States and in strategic overseas markets.
Statements made in this press release that relate to future events,
expectations, performance or financial results of CMC are forward-looking
statements within the meanings of securities laws. CMC cautions that, by
their nature, forward-looking statements involve risk and uncertainty. In
particular there can be no assurance that the financial or operational
results of the transaction disclosed in this press release will be
advantageous to CMC. The forward-looking statements contained in this press
release speak only as of this date, and the Company does not assume any
obligation to update.
SOURCE Commercial Metals Company
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Related links:
http://www.commercialmetals.com
CONTACT:
Debbie Okle, Director, Public Relations of
Commercial Metals Company, +1-214-689-4354
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