Schnitzer Agrees to Acquire Greenleaf

Two wholly-owned subsidiaries of Schnitzer Steel Industries, Inc. -- Pick-N-Pull Auto Dismantlers, a California general partnership, and PNP Commercial Acquisition, LLC, a Delaware limited liability company -- entered into a purchase agreement with Tree Acquisition, L.P. pursuant to which PNP Commercial agreed to acquire all of the issued and outstanding units of Greenleaf Auto Recyclers, LLC.

Greenleaf is an auto dismantling and recycling operation. It currently operates at 22 locations in the United States.

Schnitzer presently operates Pick-N-Pull, a network of auto dismantling yards scattered throughout the United States and Canada.

The cost of the acquisition is $23.5 million.

At the same time, PNP Commercial entered into an agreement to purchase, from Ford, all of the issued and outstanding membership interests of GLA Real Estate Holdings, LLC, which owns five parcels of real estate currently leased by Greenleaf in connection with its business; and two promissory notes executed by Tree and Greenleaf and payable to Ford. The total consideration to be paid by PNP Commercial, should the Ford Transaction be consummated, is $21.5 million.