PERTH, Australia, Nov. 21, 2016 /PRNewswire/ -- Alloy Steel International, Inc. (OTC: AYSI) advises that the Board of AYSI's wholly owned subsidiary, Alloy Steel Australia (Int) Pty Ltd (ASAI), has reached agreement with the Kostecki family trust to acquire Matrix Metals International Pty Ltd (Matrix), the vehicle through which the Kostecki family trust currently supplies various materials and production inputs to ASAI, under long standing supply arrangements. AYSI acquired Matrix on a cash free, debt free basis (with customary normalized net working capital adjustments) for AUD7.85m (USD 5.79m) with effect from November 18, 2016.
The Board of AYSI sought and received a 'fair value assessment' of the acquired Matrix assets from an independent advisory firm in Australia. AYSI management regards this transaction as a key step toward consolidating the Company's distinct valuable assets, which process commenced with the passing of AYSI's founder, Gene Kostecki, in 2014.
About Alloy Steel
Alloy Steel manufactures and distributes Arcoplate, a technically superior and market leading 'alloy overlay' wear plate, servicing the global market place from its modern manufacturing facilities in Perth, Australia. Arcoplate is used throughout the mining and materials processing industries, from opportunistic one-off specialty applications in small companies to large relationship based repeat business applications with leading international companies.
Arcoplate provides users with superior wear protection due to its premium alloy mix, its high ratio of carbide rich alloy and its unique manner of manufacture. The product's technical superiority combined with its unbeatable 'whole-of-life' cost has resulted in Arcoplate's wide acceptance in the mining and mineral processing industries to reduce wear in a host of fixed plant and mobile equipment applications.
In mining and materials processing industries, where premature equipment wear is the primary cause of downtime, to undertake repairs or refurbishment, Arcoplate can provide users with significant profit improvement. Arcoplate can substantially lower equipment downtime, resulting in higher production, whilst also lowering the overall cost of wear protection.
Furthermore, in applications where material 'hang-up' or 'carry-back' are also a significant cause of lost production, such as sticky materials that do not discharge freely from truck trays, buckets and chutes, Arcoplate's unique characteristic of polishing to a very low friction factor has the potential to virtually eliminate these problems, whilst simultaneously providing enhanced equipment wear life.
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SOURCE Alloy Steel International, Inc.