Schnitzer Steel Continues Its Expansion of Pick-N-Pull
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PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 4, 2005--Schnitzer Steel
Industries, Inc. (Nasdaq:SCHN) today announced that its retail used
auto parts chain, Pick-n-Pull, signed a definitive agreement to buy
the assets and lease the sites for four self service used auto parts
stores in St. Louis and Kansas City, Missouri, Columbus, Ohio and
Virginia Beach, Virginia from Vehicle Recycling Solutions LLC (VRS).
The Company anticipates the transaction will close in mid January
2005.
Commenting on the acquisition, Pick-n-Pull's President, Tom
Klauer, said, "The addition of these four stores will fit nicely into
Pick-N-Pull's existing 26 store network. The St. Louis, Kansas City
and Columbus stores increase the Company's existing mid-west store
base and the Virginia Beach store provides Pick-n-Pull with an eastern
presence giving us a platform to expand our network of stores along
the eastern seaboard. In addition, the stores come with good
management teams and a work force that will support Pick-n-Pull's
integration of this business and the continued expansion of its store
network. The Company anticipates this acquisition will be accretive to
earnings."
Pick-n-Pull's self service used auto parts business is an
important segment of Schnitzer's growth plans. The VRS acquisition
comes less than a year after Pick-n-Pull's acquisition of three
Canadian stores in March 2004.
Schnitzer Steel Industries, Inc. is one of the nation's largest
recyclers of ferrous metals, a leading self-service used auto parts
retailer with 26 current locations in the U.S. and Canada operating
under the name of Pick-N-Pull, and manufacturer of finished steel
products. The Company, with its joint venture partners, processes
approximately 5.2 million tons of recycled ferrous metals per year as
well as brokers nearly 3.0 million tons through various brokerage
arrangements. In addition, the Company's steel mill has an annual
production capacity of approximately 700,000 tons of finished steel
products. The Company and its joint venture partners operate primarily
along the West Coast and Northeastern seaboard of the United States.
This news release contains forward-looking statements, within the
meaning of Section 21E of the Securities Exchange Act of 1934, which
are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. One can generally identify
these forward-looking statements because they contain "expect",
"believe", "anticipate", "estimate" and other words that convey a
similar meaning. One can also identify these statements as statements
that do not relate strictly to historical or current facts. In
particular, this news release includes a prediction that the VRS
acquisition will be accretive to the Company's earnings. The self
service used auto parts business, including the VRS stores, is subject
to a number of risks that could prevent the VRS stores from
maintaining or exceeding their current levels of profitability, such
as volatile supply and demand conditions affecting prices and volumes
in the markets for products, services, automobile feedstock and other
raw materials; local and worldwide economic conditions; increased
competition; weather; and business integration issues, all as
discussed in more detail under the heading "Factors That Could Affect
Future Results" in the Company's most recent annual report on Form
10-K. One should understand that it is not possible to predict or
identify all factors that could cause actual results to differ from
the Company's forward-looking statements. Consequently, the reader
should not consider any such list to be a complete statement of all
potential risks or uncertainties. The Company does not assume any
obligation to update any forward-looking statement.
For more information about Schnitzer Steel Industries, Inc. go to
www.schnitzersteel.com.
CONTACT: Schnitzer Steel Industries, Inc.
Barry Rosen, 503-323-2720 (Financial Contact)
or
Tom Zelenka, 503-323-2821 (Press Contact)
www.schnitzersteel.com
SOURCE: Schnitzer Steel Industries, Inc.