CHICAGO, April 3, 2012 (GLOBE NEWSWIRE) -- JMC Steel Group Inc. ("JMC") announced today that it has completed its acquisition of Lakeside Steel Inc. (TSX-V: LS) ("Lakeside"). Pursuant to the arrangement under the Business Corporations Act (Ontario) (the "Arrangement"), JMC, through a wholly owned subsidiary, acquired all of the issued and outstanding common shares of Lakeside at a price of CAD $0.2983 per share in cash.
Through this acquisition, JMC will expand its offerings in the oil and gas industry. JMC will combine the operations of Lakeside Steel with their existing oil and gas business to offer oil country tubular goods (OCTG) products (ranging from 2 to 9 5/8 inches O.D.) and A25 & X Grade line pipe (ranging in size from 2 to 10 3/4 inches O.D.). This new North American JMC division will be named Energex Tube, which symbolizes energy and excellence.
"Energex Tube's product offerings will greatly benefit from JMC's manufacturing expertise, quality control standards and proactive customer service capabilities," said Randy Boswell, JMC's vice president of sales and marketing for pipe and piling products. "JMC's mantra is, 'The Strength to Deliver,' words our employees and brands exemplify every day. Energex Tube's customers will immediately realize the benefits of our ability to meet their most demanding delivery and support requirements."
As a result of the acquisition, JMC will assume responsibility for Lakeside Steel, including its former headquarters and plant operations in Welland, Ontario; operating facilities in Thomasville, Alabama, and Corpus Christi, Texas; and two processing plants under construction in Thomasville, Alabama. When the new facilities become operational in the fourth quarter of 2012, their manufacturing capabilities will include specialized heat-treatment and end-finishing operations, supporting JMC's efforts to deliver finished product ready for use in the field.
"We are extremely excited about the new opportunities this acquisition will bring," said Frank Riddick, chief executive officer of JMC. "The oil and gas industry continues to grow at a fast rate, and we are eager to expand our offering of line pipe and OCTG to a growing customer list, which already includes leading end users and distributors across North America."
Former Lakeside Steel executive Robert Okrzesik will take on the role of vice president of sales and marketing for Energex Tube, bringing more than 30 years of experience selling and marketing OCTG products. "We're happy to have Bob on the team," said Riddick. "His leadership and strong customer relations skills will enhance our ability to drive the added value of our combined businesses into the marketplace."
Mr. Okrzesik indicated, "I am confident that our oil patch customers will benefit from our elevated focus to deliver best-in-class product quality, strong engineering support and superior customer service."
About JMC Steel Group
JMC Steel Group includes the operating divisions of Atlas Tube, Picoma, Energex Tube and Wheatland Tube. It is the largest independent manufacturer of hollow structural sections (HSS) and steel pipe in North America, and the top producer of electrical conduit and elbows, couplings and nipples in the United States. JMC Steel Group delivers a broad range of pipe and tube solutions that build its customers' success. For more information, contact JMC Steel Group at 312-275-1600 or info@jmcsteel.com, or visit www.jmcsteelgroup.com
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