A. M. Castle & Co., a global distributor of specialty metal and plastic products, value-added services and supply chain solutions, has announced that it has acquired the outstanding capital stock of Metals UK Group, a distributor and processor of specialty metals primarily serving the oil and gas, aerospace, petrochemical and power Generation markets worldwide. Metals UK Group has four processing facilities; two in Blackburn, England, including its headquarters, one in Hoddesdon North East of London and one in Bilbao, Spain. Metals UK Group reported revenues of USD 72 million for fiscal year 2007. Sales outside of the UK comprise 25% of the company’s total revenues and include customers in 36 countries throughout Europe, Asia, Australasia and the Americas. Current management will remain in place, including Mr. Ian Griffiths, founder and President of Metals UK Group and a former member of the A.M. Castle management team. In conjunction with the acquisition, the Company amended its existing revolving line of credit, expanding it to USD 230 million, which includes a USD 50 million increase in capacity specifically to fund the acquisition and provide for future working capital needs of its European operations. The increased line allows for funding in either British pounds or Euros to reduce the impact of foreign exchange rate volatility.
