Apr 13 2006
Commercial Metals Company has announced 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."
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