IRVING, Texas, May 29, 2014 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) announced today that on May 20, 2014, Commercial Metals Company, through its wholly-owned subsidiary, Structural Metals, Inc. (collectively, "CMC"), entered into a definitive Agreement for the Purchase and Sale of Assets with Newell Recycling of San Antonio, LP ("Newell Recycling") and John R. Newell for the purchase of substantially all of the assets of Newell Recycling located at 726 Probandt Street San Antonio, Texas. CMC anticipates that the projected closing date will be June 13, 2014, but completion of the acquisition is contingent upon satisfaction of customary closing conditions. Newell Limited will retain the Media Plant operation located at the site, as well as the shredder operations of Newell Recycling in Eagle Pass, Texas.
Along with this purchase of the assets of Newell Recycling, CMC will acquire a complete 80" X 104" shredder with a 4000 hp Alston motor from The Shredder Company. CMC will evaluate the current shredder capacity in Central Texas and a determination will be made in the next 6-12 months on the continued operation of a shredder in the current location in San Antonio, Texas and the most beneficial location to place the 80" X 104" shredder.
This acquisition of the assets of Newell Recycling continues the vertical integration of CMC by providing raw materials for its CMC Steel Texas location, establishes a larger recycling presence in San Antonio, Texas, and provides an opportunity for continued growth of our recycling operations in the Central Texas Area.
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
This news release contains forward-looking statements regarding CMC's expectations relating to CMC's future results and CMC's operating plans. These forward-looking statements generally can be identified by phrases such as we, CMC or its management, "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears" or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, CMC undertakes no obligation to update, amend or clarify any forward-looking statements to reflect events, new information or otherwise.
Actual results may differ materially from those projected as a result of certain risks and uncertainties, including, but not limited to, the following: absence of global economic recovery or possible recession relapse and the pace of overall global economic activity; construction activity or lack thereof; decisions by governments affecting the level of steel imports, including tariffs and duties; difficulties or delays in the execution of construction contracts resulting in cost overruns or contract disputes; metals pricing over which CMC exerts little influence; increased capacity and product availability from competing steel minimills and other steel suppliers, including import quantities and pricing; execution of cost reduction strategies; industry consolidation or changes in production capacity or utilization; currency fluctuations; availability and pricing of raw materials, including scrap metal, energy, insurance and supply prices; passage of new, or interpretation of existing, environmental laws and regulations; and those factors listed under Item 1A "Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended August 31, 2013.
SOURCE Commercial Metals Company