Reliance Steel & Aluminum Co. announces completion of acquisition of Siskin Steel & Supply Co. Inc. for $71 million in cash

Business Wire, Oct 2, 1996

LOS ANGELES--(BUSINESS WIRE)--Oct. 2, 1996--Reliance Steel & Aluminum Co. (NYSE:RS) Wednesday announced that it has completed the acquisition of 100 percent of the outstanding shares of Siskin Steel & Supply Co. Inc., of Chattanooga, Tenn., for $71 million in cash.

As previously announced on Sept. 30, 1996, Siskin, with four plants located in Chattanooga and Nashville, Tenn.; Spartanburg, S.C.; and Birmingham, Ala., will be a wholly-owned subsidiary of Reliance. Fiscal year ended June 30, 1996 revenues for Siskin, one of the leading metals service center companies in the Southeastern United States, were approximately $151 million.

"We are pleased to announce the completion of our largest acquisition to date. Siskin provides us with a solid position in a new geographic area of the country and also establishes Reliance as a national company," said David H. Hannah, president of Reliance Steel & Aluminum. "This purchase, which will add immediately to our earnings, is an example of our commitment to growth and profitability on behalf of our shareholders."

Reliance Steel & Aluminum, with headquarters in Los Angeles, is one of the largest metals service center companies in the United States.

Through a network of 34 metals service centers in 13 states, and Canada, including Siskin Steel & Supply Company Inc., CCC Steel Inc. and Reliance's 50 percent owned and operationally controlled company, American Steel L.L.C., the company provides value-added metals processing services and distributes a full line of more than 20,000 metal products.

These products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper and alloy steel to more than 30,000 customers in various industries. Valex Corp., a wholly owned subsidiary, is a leading domestic manufacturer and international distributor of electropolished stainless steel tubing and fittings used in the construction and maintenance of semiconductor manufacturing plants.

CONTACT: Reliance Steel & Aluminum Co., Los Angeles

Steven S. Weis, 213/582-2272

or

Hill and Knowlton Inc.

Kim P. Feazle, 213/966-5721