July 18, 2006 — Monarch Steel Co. has entered into a purchase agreement with Feralloy Corp. to acquire the Chicago-based company's Cleveland operations and facilities, which are located near the interstate intersection of I-77 and I-480.

"This purchase provides us the added capacity necessary to continue expanding our production capability and product offerings," said Robert L. Meyer, Monarch's CEO. "It conforms to our strategic plan to achieve greater economies of scale and scope and reinforces our continued commitment to the Cleveland area."

Feralloy President and CEO Frank M. Walker says this transaction will be another step toward consolidating flat roll processing capacity in the Cleveland area, and will strengthen Feralloy's overall performance within the industry.

The transaction is expected to close within the next 30 days. Both companies have developed a mutual transition plan, which will provide service continuity to their customers during this interim period.

Monarch Steel Co. was founded in 1934 as a supplier of quality flat rolled steel products serving automotive; truck and trailer; lawn and garden; rail; tubing; pressure tanks; and full-line service center markets. Monarch serves these from Cleveland; Cadiz, Ky., and Decatur, Ala.