PRESS RELEASE DATED OCTOBER 8,1997
Published on
EXHIBIT 20.1
[RELIANCE STEEL & ALUMINUM LETTERHEAD]
NEWS RELEASE
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FOR IMMEDIATE RELEASE CONTACT: David H. Hannah
President
(213) 582-2272
Kim P. Feazle
Hill and Knowlton, Inc.
(213) 966-5721
RELIANCE STEEL & ALUMINUM CO. ANNOUNCES
AGREEMENT TO ACQUIRE PHOENIX METALS COMPANY
Los Angeles, CA -- October 8, 1997 -- Reliance Steel & Aluminum Co.
(NYSE:RS) announced today that it has agreed in principle to acquire all of the
outstanding capital stock of Phoenix Metals Company ("Phoenix"), a
privately-held, metals service center company headquartered in Atlanta, Georgia,
subject to negotiation of a definitive agreement and completion of due
diligence. Upon successful completion of the transaction, current management
will remain in place and continue to operate the business as a wholly-owned
subsidiary of Reliance. The acquisition is expected to be completed within 60
days.
Phoenix, founded in 1979, has facilities in Atlanta, Georgia;
Birmingham, Alabama; Tampa, Florida; and Charlotte, North Carolina. The
company's annual revenues are approximately $120 million and their products
include primarily flat-rolled aluminum, stainless steel and coated steel.
(more)
2-2-2
"This outstanding operation adds to our growing presence in the
Southeast area of the United States," said David H. Hannah, president of
Reliance Steel & Aluminum Co. " Phoenix will add new products and processing
capabilities in this fast-growing section of the country, while also
contributing to our corporate objectives for revenue enhancement and earnings
growth."
When completed, this transaction will represent Reliance's fourth
acquisition in 1997. On October 1, 1997, the Company announced the purchase of
Service Steel Aerospace Corp. Additionally, Amalco Metals, Inc. and AMI Metals,
Inc. were also acquired by Reliance earlier this year.
Reliance Steel & Aluminum Co., headquartered in Los Angeles,
California, is one of the largest metals service center companies in the United
States. Through a network of 43 metals service centers in 15 states, including
CCC Steel, Inc., Siskin Steel & Supply Company, Inc., AMI Metals, Inc., Amalco
Metals, Inc., Service Steel Aerospace Corp., and Reliance's 50% owned and
operationally controlled company, American Steel, L.L.C., the Company provides
value-added metals processing services and distributes a full line of over
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 33,000 customers in various industries. Valex Corp., a 97%-owned
subsidiary, is a leading domestic manufacturer and worldwide distributor of
electropolished stainless steel tubing and fittings used in the construction and
maintenance of semiconductor manufacturing plants.
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