A. M. Castle & Co., a North American distributor of highly engineered metals and plastics, announced Monday that it will acquire Transtar Metals, a distributor of high-performance metals to the global aerospace and defense industries, for $180 million.
A. M. Castle expects to complete the acquisition of the Torrance, CA-based Transtar Metals in September, 2006.
Transtar's Twelve-month sales for the period ended June 30, 2006 were approximately $250 million with profit rates comparable to A.M. Castle.
Transtar has six operations in the U.S. and locations in both the United Kingdom and France. Additionally, Transtar maintains a sales presence throughout Europe and the Far East; international sales are over one-third of Transtar's total revenue stream.
The Transtar management will remain in place including the current CEO, Steve Scheinkman, who will continue to lead the Company. Transtar will initially run as a wholly owned subsidiary of A. M. Castle following the closing of the deal.
The acquisition of Transtar will more than double A. M. Castle's presence in the aerospace and defense industries, according to Michael Goldberg, President and CEO of A. M. Castle & Co.