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US - Optima Specialty Steel to acquire Kentucky Electric Steel

Optima Specialty Steel Inc, a portfolio company of Optima Acquisitions LLC, announced that it has entered into a definitive merger agreement with ALJ Regional Holdings Inc to acquire 100% of KES Acquisition Company dba Kentucky Electric Steel.

KES is a value added manufacturer of Special Bar Quality and Merchant Bar Quality flat steel products. KES has been a supplier to Optima Specialty Steel and contributes to Optima Specialty Steel's long term strategy alongside its current wholly owned subsidiaries Niagara LaSalle Corporation and Michigan Seamless Tube LLC. Niagara LaSalle is a specialty steel processor and is North America's largest independent manufacturer of high quality engineered cold finished steel bars. MST is a specialty steel processor and a leading independent manufacturer of value-added precision tolerance, cold drawn seamless tubes.

Mr Kevin Stevick CEO & president of Optima Specialty Steel said that "I am pleased that KES will become a part of the Optima Specialty Steel family. KES fits perfectly into Optima Specialty Steel's long term strategy of building a leading specialty steel producer that delivers the best steel products to our customers. Optima Specialty Steel, its management team and employees are delighted by this opportunity to continue to solidify its position in the specialty steel industry and to strengthen relationships with its customers and suppliers."

The transaction is subject, among other conditions, to an ALJ shareholder vote, obtaining necessary regulatory approvals and arrangement of financing by Optima. The transaction is expected to close in December 2012.

Jefferies & Company Inc acted as the financial advisor and Baker & McKenzie acted as legal counsel to Optima. Houlihan Lokey Capital, Inc and Roth Capital Partners LLC acted as the financial advisors and Morrison & Foerster LLP acted as legal counsel to ALJ Regional Holdings Inc and KES Acquisition Company.

Source - Optima Acquisitions LLC

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