JFE SHOJI CORPORATION FOR THE ACQUISITION OF CALIFORNIA EXPANDED METAL PRODUCTS CO. (CEMCO®), LEADING SUPPLIER OF FRAMING STEEL PRODUCTS

Eexpands JFE Shoji America’s steel products business in the United States

• The CEMCO brand, management structure, employees and operations will be maintained

• CEMCO produces over 300 million linear feet of high quality steel framing and building products each year.

• Transaction Fills Position of Light Galvanized Steel Products in JFE Shoji America’s Portfolio

LOS ANGELES, August 18, 2022 /PRNewswire/ — JFE Shoji Corporation, Tokyo, Japan and its subsidiary JFE Shoji America Holdings, Inc, Los Angeles, California entered into a definitive agreement to acquire all of the outstanding shares of California Expanded Metal Products Co. (CEMCO^®) of the Poliquin family shareholding group. The transaction is expected to close at the end September 2022 subject to customary closing conditions and regulatory approval.

Junji YamadaCEO of JFE Shoji America Holdings, Inc, said, “JFE Shoji America has a disciplined acquisition model. We seek value franchises with strong brands, similar corporate cultures and excellent business fundamentals. CEMCO fits our target acquisition profile and fills a gap in our business portfolio. . We welcome the CEMCO team to JFE Shoji America.”

“CEMCO has built a brand on service, partnership and innovation with employees who are committed to our customers and shareholders who support them. We have grown from a single plant to four manufacturing and distribution sites across over 520,000 square feet with over 1,000 tons of daily production capacity,” said Raymond E. (Ted) Poliquin, CEO and Chairman of the Board of CEMCO. “The Poliquin family is very pleased to sell CEMCO to JFE Shoji Corporation. We would like to thank Junji Yamada-san and the JFE Shoji America team for their great partnership and collaboration on our transaction. As we explored the potential sale to JFE Shoji, it was clear that they had a passion for the CEMCO business and would be strong stewards in the years to come. »

Scott YesnerCEMCO’s CFO said, “The strong industrial logic of a transaction between our companies was further supported by the alignment of corporate culture and goals. CEMCO will fit seamlessly into the JFE Shoji group of companies. We see significant synergy and potential for scale in joining the JFE Shoji Group. The management and advisory teams worked together for a successful transaction for our businesses. »

The story continues

After closing, CEMCO will operate identically to its current operations. CEMCO’s current management structure will remain in place and will allow CEMCO to provide the same high level of service that its customers have come to expect. Integration-related activities will be limited to back-office business functions with no impact on customers, suppliers or business partners. Tom PorterChairman of CEMCO and Chairman of SFIA, said, “The transaction is a great outcome for our customers, suppliers, employees and business partners. We will be able to advance our excellent service model as it is today. JFE Shoji Group’s capital, supply chain and industrial operations resources will be a great advantage to CEMCO. We are really excited to leverage the capabilities of JFE Shoji. CEMCO employs more than 500 team members across the United States. Our employees will be part of a larger business complex with even more opportunities. “

CEMCO, owned and operated by the Poliquin family since 1981, is one of the largest independent manufacturers of steel framing and lath products in the United States. Founded in 1974 and based in the United States City of Industry, CaliforniaCEMCO has manufacturing and distribution operations in City of Industry, California; Pittsburgh, California; Denver, CO; and Fort Worth, TX. The company manufactures structural and non-structural light gauge steel framing products, metal laths, proprietary fire-air-sound products and building accessories. With over a thousand committed jobs annually, CEMCO delivers a full range of commercial projects, including healthcare, office, retail, education, municipal and transportation. SoFi Stadium, Loma Linda Hospital, Hollywood Paladium Residential Towers, US Olympic Museum in colorado springsEast 5^e Street hotel in Austinand the Chase Center of San Francisco are just a few notable projects. CEMCO is also a solar steel frame supplier. For more information, visit www.cemcosteel.com.

CEMCO’s transaction advisors included DA Davidson as sole financial advisor, DLA Piper as legal advisor and KPMG as tax advisor. Mizuho served as financial advisor, Pillsbury Withrop Shaw Pittman as legal advisor, and Deloitte and Touche as tax and due diligence advisor for JFE Shoji America Holdings, Inc.

About JFE Shoji Corporation
JFE Shoji Corporation strives to establish a more stable revenue base by developing both trade and business. In addition, JFE Shoji strengthens the business base by accelerating collaborations between business bases based on four global key regions, which focus on JapanAmericas, China, ASEAN. By expanding the supply chain from upstream to downstream with a focus on steel-related activities, JFE Shoji unlocks new possibilities and pursues social and environmental issues such as carbon neutrality and a more sustainable society. focused on recycling as growth opportunities. While leveraging management resources and the information network, JFE Shoji works on ESG management to lead the times ahead. For more information about JFE Shoji Corporation, visit https://www.jfe-shoji.co.jp/en/

About CEMCO^®
California Expanded Metal Products Co. (CEMCO^®) is the leading manufacturer of cold-formed steel framing and metal lath products in United States. Its product segments include Viper-X® and ViperStud Drywall Framing Products, Metal Lath, CEMCO® joint firestoping products, ProX Header^®Sure-Span^® Steel Stud Floor Joist System, Sure-Board^® for shear wall panels and water management products as well as its SFIA code certified steel framing products. Founded in 1974, CEMCO is the leader in quality, service and product development, and offers one of the broadest product lines available in cold-formed steel framing and metal lath and products. plaster used for the commercial and residential construction markets. For more information about CEMCO, visit www.cemcosteel.com.

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SOURCECEMCO