DALLAS, Feb. 6 /PRNewswire/ -- Keystone Consolidated Industries, Inc.
(NYSE: KES) today announced that it has agreed to purchase the inventory and
equipment used to manufacture Insteel Industries Inc. (NYSE: III) agricultural
fencing products for approximately $13.0 million.  The purchase price will be
adjusted based upon the actual inventory balances.
    Under the terms of the agreement, Keystone will immediately assume the
sales and marketing responsibilities associated with serving Insteel's former
customer base in the agricultural and retail markets.  Insteel will continue
manufacturing agricultural fencing products for Keystone as equipment is
relocated to Keystone's production facilities.
    Keystone is the nation's largest producer of fabricated wire products for
the agricultural and retail industries, selling its products under the widely
recognized Keystone RED BRAND(R) trademark for more than 70 years.  The
equipment acquisition will expand Keystone's manufacturing capabilities and
increase revenues from agricultural fencing products.
    Robert W. Singer, president and chief executive officer of Keystone,
stated, "The acquisition of this equipment brings us a step closer to
executing one of our major strategies -- to consume more of our carbon steel
rod internally and sell more higher-margin, value-added fabricated wire
products.  This purchase, along with our acquisition of Engineered Wire
Products, Inc. in December 1997, will increase our annual shipments of
fabricated wire products by approximately 90,000 tons, or 45 percent, and
further strengthen Keystone's position as a leader in the fabricated wire
products marketplace.
    "We are evaluating our options for the site or sites where the equipment
will be located.  A key part of this decision will be the product and service
needs of our customers.  Insteel's agricultural fencing-product customer base
shared the same market channels as Keystone.  As such, this project will
significantly expand Keystone's current market channels and customer base,"
Singer added.  The equipment relocation will occur in the second half of 1998.
    Keystone Consolidated Industries, Inc. is headquartered in Dallas.  The
company is a leading manufacturer and distributor of fencing and wire
products, carbon steel rod, industrial wire, nails and construction products
for the agricultural, industrial, construction, original equipment markets and
the retail consumer.  Through its DeSoto subsidiary, Keystone engages in the
production and packaging of household cleaning products.  Keystone is traded
on the New York Stock Exchange under the symbol of KES.
    The statements in this release relating to matters that are not historical
facts are forward-looking statements that involve risks and uncertainties,
including, but not limited to, future supply and demand for and cyclicality of
the company's products, future global economic conditions, changes in
government regulations, competitive products, customer and competitive
strategies, the impact of pricing and production decisions, environmental
matters, the ultimate resolution of pending litigation, successful
implementation of the company's capital improvements plan and any possible
future litigation and other risks and uncertainties detailed in the company's
SEC filings.

Link to this page: