Reliance Steel & Aluminum Co. Announces Completion of Acquisition of Remaining 50% Interest in American Metals Corporation

Business Wire, Oct 5, 1998

LOS ANGELES--(BUSINESS WIRE)--Oct. 5, 1998--Reliance Steel & Aluminum Co. (NYSE:RS) Monday announced that it has completed its previously announced acquisition of American Metals Corporation ("American Metals"), based in West Sacramento, Calif., with two additional service centers in Redding and Fresno, Calif.

American Metals was previously owned by American Steel, L.L.C. ("American Steel"), in which Reliance owns a 50% interest but has operational control. American Steel now consists of service centers in Portland, Ore. and Seattle (Kent), Wash.

The transaction was accomplished in two steps. First, American Steel distributed the stock of American Metals equally to Reliance and American Industries Inc. ("Industries"), which owns the other 50% of American Steel. Immediately thereafter, American Metals redeemed its stock owned by Industries for cash and title to American Metals' real property, which is being leased back from Industries. Additional terms were not disclosed.

American Metals' revenues for the year ended Dec. 31, 1997, were $56 million. Its products include, primarily, carbon steel plate, bars, structurals, and sheet and aluminum and stainless steel sheet.

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 63 processing and distribution centers (including American Steel, L.L.C.) in 20 states, the company provides value-added metals processing services and distributes a full line of over 60,000 metal products. These products include galvanized, hot-rolled and cold-finished steel; stainless steel; aluminum; brass; copper and alloy steel to more than 40,000 customers in various industries.