Optima Specialty Steel, Inc., a portfolio company of Optima Acquisitions, LLC, announced that it has entered into a definitive merger agreement with Niagara LaSalle Corporation. Pursuant to the merger agreement, Optima Specialty Steel will acquire 100% of Niagara LaSalle.

Niagara LaSalle is a specialty steel processor and is North America’s largest independent manufacturer of high quality engineered cold finished steel bars. As a result of the merger, Niagara LaSalle will become a significant part of Optima Specialty Steel along with Optima Specialty Steel’s wholly-owned subsidiary Michigan Seamless Tube, LLC (MST). MST is a specialty steel processor and a leading independent manufacturer of value-added precision-tolerance, cold drawn seamless tubes.

Kevin Stevick, CEO and president of Niagara LaSalle, who will become the CEO of Optima Specialty Steel, stated, "I am pleased that Niagara LaSalle will become a part of Optima Specialty Steel. Niagara LaSalle will benefit from Optima Acquisition’s strong record of success acquiring and growing companies in the steel sector. I am confident in the ability of the new owners to continue to support Niagara LaSalle’s leadership position in the cold finished steel bar industry and I am particularly excited at the prospect of working side-by-side with our partners at MST. Optima Specialty Steel recognizes the importance and commitment of Niagara LaSalle’s management team and employees, as well as the Company’s strong relationships with its customers and suppliers."

The transaction is expected to close in 2011, subject to receipt of customary regulatory approvals, and the satisfaction of other customary closing conditions.

Jefferies & Company, Inc. acted as exclusive financial advisor to Optima Specialty Steel in this transaction. Harris Williams & Co. acted as exclusive financial advisor to Niagara LaSalle. Ropes and Gray LLP acted as legal counsel to Niagara LaSalle and Baker & McKenzie LLP acted as legal counsel to Optima Specialty Steel.