Jan 2 2007
Reliance Steel & Aluminum Co. 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.