WELLAND, ON, Sept. 22 /CNW/ - Lakeside Steel Inc. ("Lakeside Steel" or the "Company") (TSX-V: LS) today announced that it is interested in acquiring some or all of the assets of Barzel Industries Inc. ("Barzel") through the Chapter 11 bankruptcy process. On September 15, 2009, Barzel and its U.S. subsidiaries voluntarily petitioned for protection under Chapter 11 of the U.S. Bankruptcy Code and its Canadian subsidiaries filed an application in Canada seeking protection under the provisions of the Companies' Creditors Arrangement Act.
Headquartered in Norwood, Massachusetts, with operational hubs in Mississauga, Ontario, and Montreal, Quebec, Barzel operates a network of 16 pipe and tube, manufacturing, processing and distribution facilities that serve a variety of industries, from construction and industrial manufacturing to transportation, infrastructure development and mining. Lakeside Steel believes there is a very strong strategic fit between the two companies' respective businesses that could be realized through the acquisition of certain of Barzel's assets or, potentially, Barzel's entire business.
Lakeside Steel's management team and board of directors are committed to growing its business both organically and through accretive mergers and acquisitions. Lakeside Steel believes it has sufficient financing in place to complete a responsible acquisition of assets of Barzel.
Lakeside Steel believes that the combination of its business with the assets of Barzel would enable substantially increased steel purchasing power, improved operating efficiencies and streamlined logistics. A combined Lakeside Steel and Barzel would create an emerging mid-sized steel pipe, tube and processing company with a poised aggressive merger and acquisition platform.
Lakeside Steel in combination with the whole of Barzel would have a diversified product mix with pipe and tube manufacturing, slitting, pickling, and would create what management believes is the sixth largest pipe and tube company in North America.
Ron Bedard, President and Chief Operating Officer of Lakeside Steel, said "Lakeside Steel will pursue those select mergers and acquisitions that allow us to grow our business profitably. Acquiring Barzel or certain assets from Barzel would clearly fit with this goal and would position Lakeside Steel to become an even stronger pipe and tube manufacturer as economic conditions improve."
About Lakeside Steel
Lakeside Steel is the parent company of Lakeside Steel Corp. ("Lakeside"). Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing manufacturer. Lakeside's list of customers includes large oil and gas, mining, automotive and commercial and industrial supply companies. In addition to supplying its products in these industries, Lakeside manufactures pipe and mechanical tubing for the resale market, which is sold to distributors in Eastern Canada and the Northeastern United States. Lakeside manufactures a variety of products for these industries including oil well tubing and casing, mechanical tubing, pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and plumbing pipe, drill rod and specialty tubing. Lakeside serves customers worldwide, either directly or indirectly, in Canada, Australia and the United States.
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SOURCE LAKESIDE STEEL INC.
For further information: For further information: Ron Bedard, President & Chief Operating Officer, Lakeside Steel Inc., Tel: (905) 735-7473, Fax: (905) 735-9069, firstname.lastname@example.org; Ken Hunter, Chief Financial Officer, Lakeside Steel Inc., Tel: (905) 735-7473, Fax: (905) 735-9069, email@example.com