American Railcar Industries Completes the Purchase of Custom Steel, Inc. from Steel Technologies
April 03 2006 - 4:30PM
Business Wire
American Railcar Industries, Inc. (NASDAQ: ARII) ("ARI") today
announced that the Company completed the previously announced
purchase of the stock of Custom Steel, Inc., a subsidiary of Steel
Technologies Inc. (NASDAQ/NM: STTX). Custom Steel operates a
facility located adjacent to ARI's component manufacturing facility
in Kennett, Missouri that produces value-added fabricated parts
that primarily support ARI's railcar manufacturing operations. The
purchase price was approximately $13 million plus approximately $5
million for inventories. Commenting on the announcement, James J.
Unger, Chief Executive Officer of ARI, said, "We are pleased to
have completed the acquisition of Custom Steel. The addition of
this facility to our railcar manufacturing business increases the
percentage of railcar parts that are manufactured by the Company.
We are excited to welcome the employees of the Kennett facility to
ARI. For many years we have been the beneficiary of their good work
and are very pleased to have them join us in manufacturing railcars
for our customers." About American Railcar Industries, Inc.
American Railcar Industries, Inc. is a leading North American
manufacturer of covered hopper and tank railcars. ARI also repairs
and refurbishes railcars, provides fleet management services and
designs and manufactures certain railcar and industrial components
used in the production of its railcars as well as railcars and
non-railcar industrial products produced by others. ARI provides
its railcar customers with integrated solutions through a
comprehensive set of high quality products and related services.
This press release contains statements relating to our expected
financial performance and/or future business prospects, events and
plans that are "forward-looking statements" as defined under the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements represent our estimates and assumptions only as of the
date of this press release. Such statements include, without
limitation, statements regarding the closing of our acquisition of
Custom Steel. These forward-looking statements are subject to known
and unknown risks and uncertainties that could cause actual results
to differ materially from the results described in or anticipated
by our forward-looking statements. We cannot guarantee that the
acquisition will be successful or otherwise improve our financial
performance or future business prospects. Other potential risks and
uncertainties that could adversely affect our business include,
among other things: the difficulties of integrating acquired
businesses with our own; the cyclical nature of our business;
adverse economic and market conditions; fluctuating costs of raw
materials, including steel and aluminum, and delays in the delivery
of raw materials; our ability to maintain relationships with our
suppliers of railcar components; our reliance upon a small number
of customers that represent a large percentage of our sales; the
variable purchase patterns of our customers and the timing of
completion, delivery and acceptance of customer orders; the highly
competitive nature of our industry; the risk of lack of acceptance
of our new railcar offerings by our customers; and the additional
risk factors described in our filing with the Securities and
Exchange Commission. We expressly disclaim any duty to provide
updates to any forward-looking statements made in this press
release, whether as a result of new information, future events or
otherwise. More information about American Railcar Industries, Inc.
is available on our website at www.americanrailcar.com.
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