News Releases
Schnitzer Steel Announces Expansion of Self-Service Auto Parts Business, Sale of Full-Service Business
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 2, 2009--
Schnitzer Steel Industries, Inc. (Nasdaq: SCHN) today announced it has
completed a transaction to acquire from LKQ Corporation (Nasdaq: LKQX)
the assets of six self-service used auto parts facilities and to sell to
LKQ its full-service used auto parts operation. In addition, Schnitzer
is receiving an undisclosed amount of cash.
Four of the self-service operations to be acquired are located near the
Company’s Metals Recycling Business export facility in Portland, OR,
with a closing effective today, October 2, 2009. These four stores will
represent the Company’s first used auto parts operations in the Pacific
Northwest. The additional two facilities, the purchase of which will be
effective January 15, 2010, will bring to four the number of
self-service stores the Company operates in the Dallas-Fort Worth
Metroplex. All of the acquired operations will operate under the
Company’s Pick-n-Pull brand.
Greenleaf Auto Recyclers, LLC, the full-service operation sold, operates
17 full-service parts stores in nine states. The sale of Greenleaf is
also effective as of today.
“This transaction is consistent with our strategy of expanding our Auto
Parts Business in regions where we can take advantage of vertical
integration with our Metals Recycling Business,” said Tamara Lundgren,
President and Chief Executive Officer. “In addition, it is
representative of our focus on building franchise positions in the
regions in which we operate.”
“We’d like to welcome our new colleagues into the Company,” said Tom
Klauer, President of Schnitzer’s Auto Parts Business. “These
acquisitions will allow us to successfully build upon the Pick-n-Pull
brand of self-service stores and reach many new customers in both the
Pacific Northwest and Texas. We’d also like to thank the employees at
Greenleaf for their years of service, hard work and efforts.”
At the completion of the transactions, Schnitzer’s Auto Parts Group will
operate 45 self-service stores in 14 states and Western Canada.
Terms of the transactions were not disclosed.
Schnitzer Steel Industries, Inc. is one of the largest manufacturers and
exporters of recycled ferrous metal products in the United States with
42 operating facilities located in 13 states and Puerto Rico, including
seven export facilities located on both the East and West Coasts and in
Hawaii and Puerto Rico. The Company’s vertically integrated operating
platform also includes its auto parts and steel manufacturing
businesses. The Company’s auto parts business sells used auto parts
through its 43 self-service facilities located in 14 states and in
western Canada. With an annual production capacity of nearly 800,000
tons, the Company’s steel manufacturing business produces finished steel
products, including rebar, wire rod and other specialty products. The
Company commenced its 104th year of operations in fiscal 2010.
This news release contains forward-looking statements, within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, (the "Exchange Act") which are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements include, without limitation, statements
regarding the expected benefit of the transactions, the expected timing
of the transactions and the Company's expansion plans. Such statements
can generally be identified 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. Examples of factors affecting
the Company that could cause actual results to differ materially from
current expectations are the following: volatile supply and demand
conditions affecting prices and volumes in the markets for both the
Company's products and raw materials it purchases; world economic
conditions; world political conditions; unsettled credit markets; the
Company’s ability to match output with demand; changes in federal and
state income tax laws; government regulations and environmental matters;
impact of pending or new laws and regulations regarding imports and
exports into the United States and other countries; foreign currency
fluctuations; competition; seasonality, including weather; energy
supplies; freight rates and availability of transportation; loss of key
personnel; the inability to obtain sufficient quantities of scrap metal
to support current orders; purchase price estimates made during
acquisitions; business integration issues relating to acquisitions of
businesses; new accounting pronouncements; availability of capital
resources; creditworthiness of and availability of credit to suppliers
and customers; and business disruptions resulting from installation or
replacement of major capital assets; and the adverse impact of climate
changes, as discussed in more detail in "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
Company's most recent Annual Report on Form 10-K or Quarterly Report on
Form 10-Q. 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.
Source: Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc.
Investor Relations Contact:
Rob
Stone, 503-224-9900
or
Press Relations Contact:
Tom
Zelenka, 503-323-2821
www.schnitzersteel.com
ir@schn.com