Mar 6 2007
Commercial Metals Company, headquartered in Irving, Texas, announced that it has entered into a definitive agreement to purchase substantially all the operating assets of Nicholas J. Bouras, Inc., United Steel Deck, Inc., The New Columbia Joist Company, and ABA Trucking Corporation. United Steel Deck manufactures steel deck at facilities in South Plainfield, NJ; Peru, IL; and Rock Hill, SC. New Columbia Joist manufactures steel joists in New Columbia, PA. ABA Trucking Corporation provides delivery services for United Steel Deck and New Columbia Joist. The purchase does not include Nicholas J. Bouras, Inc.'s wholly-owned subsidiary, Prior Coated Metals, and its affiliate, Bouras Properties, LLC. The purchase price for the assets is approximately $63 million plus inventory on hand at the time of closing which is expected within 40 days following regulatory approval and satisfaction of other conditions. After closing, the acquired assets will be combined with CMC Joist and operate under the trade name CMC Joist & Deck as part of CMC's Domestic Fabrication segment.
"This acquisition is in line with our growth initiative and strategy of expanding downstream steel fabrication operations," said Murray McClean, President and Chief Executive Officer of Commercial Metals Company. "In addition, the highly complementary fit of the Bouras facilities will strengthen our position as a significant supplier of steel joists throughout the United States by expanding our manufacturing capability to better serve the Northeast and Midwest markets."
Russell Rinn, Executive Vice President of Commercial Metals Company and CMC Steel Group President, added, "We look forward to the Bouras team joining CMC. Together we will build on the solid reputation Nick Bouras has established for providing excellent customer service. This addition will give CMC Joist an additional 45,000 tons of joist manufacturing capacity in a new geographic market. Just as significantly, it gives CMC 160,000 tons per year of deck manufacturing capacity along with a team of highly respected deck sales, design, and manufacturing professionals to take our deck sales beyond the line of products CMC Joist has historically offered. Our new name for these combined operations, CMC Joist & Deck, signifies the commitment to grow CMC's deck business."
Mr. Bouras comments, "I am excited that CMC is a company whose integrity and culture closely aligns with ours. I am optimistic about the future, knowing that so many of those who worked with me at Bouras will be joining a company with an excellent track record of caring for customers, suppliers, and employees."