Schnitzer Subsidiary Makes Acquisition

Schnitzer Steel Industries, Inc., based in Portland, Ore., announced that one of its wholly-owned subsidiaries has signed a definitive agreement to acquire the interest of its 50 percent partner in Pick-N-Pull Auto Dismantlers. In addition, Schnitzer's subsidiary agreed to buy the Stockton Pick-N-Pull store, which is not part of the Joint Venture, but is the single largest volume store in the Pick-N-Pull network.

The joint venture stores together with Stockton Pick-N-Pull are one of the country's leading self service used auto parts and auto dismantling networks, with 23 locations in northern California and five other states. Currently, Schnitzer's Oakland, California, metals recycling facility is Pick-N-Pull's largest customer of its recycled autobodies.

Schnitzer's subsidiary has been a 50 percent partner in the Joint Venture for the past 13 years.

The acquisition is expected to close by the middle off next month. The estimated purchase price is about $85 million, subject to adjustment for certain year-end balance sheet items and environmental liabilities, if any. In addition to typical closing conditions, the transaction is contingent upon satisfactory completion of environmental due diligence on Pick-N-Pull's facilities. The agreement also provides for a purchase price adjustment approximately one year after closing based upon the operating results of the acquired business.