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The Carlyle Group Sells Majority Stake in JMC Steel Group To The Zekelman Family

"Our new ownership and accompanying changes in financial structure will give JMC much more flexibility to make strategic investments," said JMC Group Executive Chairman Barry M. Zekelman. "I am confident the changes will have a favorable impact on our employees, customers, suppliers and business partners."

To retire the company's existing debt and facilitate the transaction, JMC Steel Group will borrow approximately $1.1 billion.

"The new ownership and capital structure coupled with our strong competitive position and operational capabilities will enhance our growth prospects and provide for an exciting future for JMC Steel, our employees, our customers and our suppliers," said Frank A. Riddick III, JMC Steel Group Chief Executive Officer.

"I believe strongly in the future of this company, the current management team, and the bright prospects for JMC Steel, which has been my passionate professional focus for 30 years," said Mr. Zekelman. "Frank and I share a vision for JMC Steel. We expect coming years to produce even greater success than we have already achieved," he said.

Carlyle Managing Director Andrew Marino said, "JMC is a great example of how manufacturing in America can thrive with the right leadership, strategic vision and capital investment. Working closely with the Zekelmans and management we have made JMC a stronger company economically and from an environmental and governance standpoint, and we look forward to continuing to create value for JMC in the future."

JMC Steel Group

JMC Steel Group is the largest independent tubular manufacturer in North America, with the most diverse product platform in the North American pipe and tube industry. Through its Wheatland Tube, Atlas Tube and Picoma product lines, it maintains a #1 market position in North America in each of its three core product categories: Hollow Structural Sections (HSS), standard pipe and electrical conduit. Formed through the combination of John Maneely Company and Atlas Tube in December 2006 and headquartered in Beachwood, Ohio, JMC operates eleven plants in five U.S. states and one Canadian province and has a total production capacity of approximately 2.6 million tons of steel pipe and tube per annum.

The Carlyle Group

The Carlyle Group is a global alternative asset manager with $97.7 billion of assets under management committed to 76 funds as of September 30, 2010. Carlyle invests across three asset classes - private equity, real estate and credit alternatives - in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, automotive & transportation, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services and telecommunications & media. Since 1987, the firm has invested $64.7 billion of equity in 1015 transactions. The Carlyle Group employs more than 900 people in 19 countries. As of June 30, 2009, in the aggregate, Carlyle portfolio companies have more than $84 billion in revenue and employ more than 398,000 people around the world. Web: www.carlyle.com; Case Studies: www.carlylegroupcreatesvalue.com; Video: www.youtube.com/OneCarlyle

The Carlyle Group
Chris Ullman, +1 202-729-5399
chris.ullman@carlyle.com