Subsidiaries...

 

Esmark Steel Group

Esmark Steel Group, a wholly owned subsidiary of Esmark, Inc., was formed in November 2009 to identify and pursue strategic acquisitions in the steel service center sector in the Midwest. The formation of Esmark Steel Group marks a return to the steel services business since Esmark sold its Wheeling-Pittsburgh Steel Corporation subsidiary and network of Midwest service centers to OAO Severstal in July of 2008 for $1.23 billion.

 

Esmark Steel Group's first acquisition was the $10 million purchase of University Park, Illinois-based Amtex Steel, Inc., a precision processing and distribution company specializing in flat-rolled and bar products for the light manufacturing and durable goods industries. The acquisition was completed November 13, 2009.

 

The acquisition included Amtex Steel's physical plant assets and real estate, as well as its rail line facilities. The company has been renamed Chicago Steel & Iron and will become a wholly owned subsidiary of the Esmark Steel Group. Esmark Steel Group will expand the workforce with key additions in the commercial sales and plant staff as part of its growth plan to rapidly increase shipment volume within the next year.

 

Esmark Steel Group will replicate its successful business strategy, which began with $4 million and grew to more than $600 million in revenue in only three years. It will target well-run, family-owned businesses with loyal customer bases and excellent processing facilities and utilize those assets as a foundation for further expansion and growth.

 

Esmark Steel Group is targeting revenues of approximately $250 million by the end of 2010 and will be pursuing additional service center acquisitions on a cash-only basis while carrying minimal debt on its balance sheet.

 

Industry veteran Thomas A. Modrowski, Chief Executive Officer of Esmark Steel Group, leads a strong management team and will oversee all steel operations. Mr. Modrowski previously managed all of Esmark's downstream operations, including the $660 million Wheeling-Corrugated subsidiary and the $630 million service center network.