IRVING, Texas, June 13, 2017 /PRNewswire/ -- Commercial Metals
Company (NYSE: CMC) (the "Company"), today announced its plan to
exit its International Marketing and Distribution Segment. As an
initial step in this plan, on June 12,
2017, the Company and its wholly owned subsidiary, CMC
Cometals International Sarl, signed a definitive agreement to sell
its raw materials trading division, CMC Cometals, to Traxys North
America L.L.C. and Traxys Europe S.A., which are affiliates of The
Carlyle Group. CMC Cometals markets, distributes and
processes metal, ores, concentrates, industrial minerals,
ferroalloys, chemicals and industrial products worldwide. The
transaction is expected to close later this summer and is subject
to customary closing conditions and regulatory approvals.
"We are pleased to see Cometals combine with the highly
respected Traxys group and are confident that this transaction will
provide Cometals with the best platform to grow its business and
serve its customers and suppliers," remarked Barbara Smith, President and Chief Operating
Officer.
Mark Kristoff, Chief Executive
Officer of Traxys Group, commented: "we are excited about this
transaction and have identified many opportunities to grow the
Cometals business as part of the Traxys Group. The Cometals team
has enjoyed a strong track record of supplier and customer service
that complements Traxys' activities and broadens our product
offerings."
Eli Skornicki, Cometals'
President, added: "under the new ownership structure, the Cometals
team will continue to operate from its current locations in the
U.S., China, Benelux and
Russia. Our dedicated team of
traders will execute all pending contracts and continue to provide
superior service. The broader Traxys franchise is sure to provide
opportunities for growth and success."
In addition, the Company announced its plan to pursue a sale of
its CMC Cometals Steel division located in Irving, Texas, which markets steel products,
as well as a restructuring and sale of the remaining trading
operations located in Asia and
Australia.
Barbara Smith commented: "These
actions will allow the Company to focus its capital and other
resources on its core steel manufacturing operations in
the United States and Poland, which are well positioned to serve the
robust demand for steel needed to support nonresidential
construction and infrastructure in the
United States and Poland. International Marketing and
Distribution has been a part of the Company's business portfolio
for many years, and we thank all of our employees for their many
years of service to the Company."
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.
About Traxys
Traxys, headquartered in Luxembourg, is a physical commodity trader and
merchant in the metals and natural resources sectors. Its
logistics, marketing, distribution, supply chain management and
trading activities are conducted by over 300 employees, in over 20
offices worldwide, and its annual turnover is in excess of
$6 billion. Traxys' focus is
primarily on the marketing and sourcing of base metals and
concentrates, minor and alloying metals, industrial minerals and
chemicals, and materials for steel mills and foundries, and the
management of all parts of the supply chain, from producer to
consumer, worldwide.
Traxys is a privately held company. Its principal shareholders
are global alternative asset manager The Carlyle Group (NASDAQ:
CG), and Traxys Management.
Forward-Looking Statements
This news release contains forward-looking statements, including
statements regarding the Company's plans to sell CMC Cometals, CMC
Cometals Steel and restructure and sell CMC Australia and the
Company's operations in Asia. These forward-looking
statements generally can be identified by phrases such as we, the
Company, 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, the Company undertakes no obligation to update, amend or
clarify any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events,
new information or circumstances 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: the achievement of closing conditions
and regulatory approvals, the results of negotiations, the
completion of potential transactions on intended timetables or at
all; rapid and significant changes in the price of metals; excess
capacity in our industry, particularly in China, and product availability from competing
steel minimills and other steel suppliers including import
quantities and pricing; currency fluctuations; compliance with and
changes in environmental laws and regulations, including increased
regulation associated with climate change and greenhouse gas
emissions; potential limitations in our or our customers' ability
to access credit and non-compliance by our customers with our
contracts; financial covenants and restrictions on the operation of
our business contained in agreements governing our debt; global
factors, including political uncertainties and military conflicts;
availability of electricity and natural gas for minimill
operations; information technology interruptions and breaches in
security data; ability to retain key executives; ability to make
necessary capital expenditures; availability and pricing of raw
materials over which we exert little influence, including scrap
metal, energy, insurance and supply prices; unexpected equipment
failures; competition from other materials or from competitors that
have a lower cost structure or access to greater financial
resources; losses or limited potential gains due to hedging
transactions; litigation claims and settlements, court decisions,
regulatory rulings and legal compliance risks; risk of injury or
death to employees, customers or other visitors to our operations;
increased costs related to health care reform legislation; and
those factors listed under Item 1A. Risk Factors included in the
Company's Annual Report filed on Form 10-K for the fiscal year
ended August 31, 2016.
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SOURCE Commercial Metals Company