MIAMI--(BUSINESS WIRE)--Optima Specialty Steel, Inc. (“Optima Specialty Steel”), a portfolio company of Optima Acquisitions, LLC (“Optima Acquisitions”), today announced the closing of its previously announced transaction with ALJ Regional Holdings, Inc. (“ALJ”) to acquire 100 percent of KES Acquisition Company dba Kentucky Electric Steel (“KES”). All conditions of closing have been satisfied by both parties.
“We are very excited to close on our acquisition of KES,” said Kevin Stevick, president and chief executive officer of Optima Specialty Steel. “We are thrilled to incorporate the company into the fold of Optima Specialty Steel, as this integration will enable us to further cement our position as an industry leader in the specialty steel market. KES has a long history of delivering quality products and value to its customers, and we look forward to honoring this legacy by continuing to serve the market with the highest standards of excellence.”
KES is a value-added manufacturer of Special Bar Quality (“SBQ”) and Merchant Bar Quality (“MBQ”) flat steel products and has been a supplier to Optima Specialty Steel. Alongside its current wholly owned subsidiaries Niagara LaSalle Corporation (“Niagara LaSalle”) and Michigan Seamless Tube, LLC (“MST”), Optima Specialty Steel’s acquisition of KES contributes to its long-term strategy of further establishing itself as a leading player in the specialty steel market while providing unparalleled customer service.
KES currently manufactures over 2,600 different SBQ and MBQ items, which are sold to the leaf-spring suspension market for light and heavy-duty trucks, mini-vans and utility vehicles, cold drawn bar converters, certain specialty applications for steel service centers, truck trailer manufacturers and other miscellaneous markets. Much like Niagara LaSalle and MST, KES employs a variety of specially designed equipment to manufacture its products to meet the exact specifications demanded by its customers.
About Optima Acquisitions, LLC:
Optima Acquisitions, LLC is a U.S.-based investment firm with affiliated holdings in steel, ferroalloys, mining, real-estate and other industries. Current affiliated companies in the steel and metals industry include Optima Specialty Steel, Inc., Warren Steel Holdings, LLC, Steel Rolling Holdings, Inc., CC Metals & Alloys, LLC, Felman Production, Inc. and Felman Trading, Inc.
About Optima Specialty Steel, Inc.:
Optima Specialty Steel, Inc., headquartered in Miami, FL, is one of North America’s leading independent manufacturers of high quality cold drawn seamless tubes and cold finished steel bars. As a steel processing specialist, the company leverages its technical expertise, skilled workforce and sophisticated equipment to produce highly engineered products including pressure-carbon, pressure-alloy, mechanical-carbon and mechanical-alloy tubing and specialty bars that meet its clients’ exact order specifications. Optima Specialty Steel is operated by its two wholly-owned subsidiaries: South Lyon, MI-based Michigan Seamless Tube, LLC and Hammond, IN-based Niagara LaSalle Corporation.
This release contains certain “forward-looking statements” made pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause the Company’s actual results to be materially different from those expressed or implied by such statements. The forward-looking statements made herein are only made as of the date of this release, and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.