A.M. Castle to sell its share of joint venture to Duferco

OAK BROOK - A. M. Castle & Co. announced it will sell its 50 percent share in joint venture Kreher Steel to Duferco Steel, Inc.

Castle will receive approximately $31.6 million as a result of the transaction, with the sale expected to close on Aug. 22, the company said in a release. Duferco will become the 100 percent owner of Kreher.

"While we have enjoyed a long-standing and valuable partnership with Duferco, Castle's decision to divest its interest in Kreher, which has significant business in the Oil & Gas end market, is in line with our recent streamlined focus on the Industrial and Aerospace markets," A. M. Castle President and CEO Steve Scheinkman, said. "The sale will allow us to direct our full attention on getting closer to our customers in those end markets, growing our business and improving our profitability over the long-term.

Matthew De Morgan, CEO of Duferco International Trading Holding said Castle's new focus on its industrial and aerospace markets "dovetailed nicely with our strategy to increase our exposure to the U.S. oil and gas sector.

"Kreher enjoys a strong and experienced management team with an enviable performance record, both in terms of returns for the shareholders as well as the care and attention paid to their customers and suppliers," De Morgan said. "We will fully support Kreher's management team to continue growing the business and thank all Kreher's stakeholders for their continued loyalty to the company."