Metals

JFE SHOJI CORPORATION TO ACQUIRE CALIFORNIA EXPANDED METAL PRODUCTS CO. (CEMCO®), MARKET LEADING PROVIDER OF STEEL FRAMING PRODUCTS

Expands JFE Shoji America’s U.S. steel products business

  • CEMCO brand, management structure, employees, and operations will be maintained

  • CEMCO Produces more than 300 million lineal feet of high-quality steel framing and building products annually

  • Transaction fills galvanized light gauge steel products position in JFE Shoji America’s portfolio

LOS ANGELES, Aug. 18, 2022 /PRNewswire/ — JFE Shoji Corporation, Tokyo, Japan and its subsidiary JFE Shoji America Holdings, Inc, Los Angeles, California has entered into a definitive agreement to acquire all the outstanding shares of California Expanded Metal Products Co. (CEMCO®) from the Poliquin family ownership group. The transaction is expected to close in late September 2022 following customary closing conditions and regulatory approval.

CEMCO logo

CEMCO logo

Junji Yamada, CEO of JFE Shoji America Holdings, Inc remarked, “JFE Shoji America has a disciplined acquisition model. We seek valuable franchises with strong brands, similar corporate cultures, and excellent business fundamentals. CEMCO fits our acquisition target profile and fills a business portfolio gap.  We want to welcome the CEMCO team to JFE Shoji America.”

“CEMCO has built a brand on service, partnership and innovation with employees who are committed to our customers and shareholders who support them. We evolved from a single plant to four manufacturing and distribution locations in over 520,000 square feet with over 1,000 tons of daily production capacity,” said Raymond E. (Ted) Poliquin, CEO and Chairman of the Board at CEMCO. “The Poliquin family is very pleased to sell CEMCO to JFE Shoji Corporation.  We want to thank Junji Yamada-san and the JFE Shoji America team for the tremendous partnership and collaboration on our transaction. As we explored the potential sale to JFE Shoji, it was clear they have a passion for the CEMCO business and will be strong stewards in the years ahead.”

Scott Yessner, CEMCO’s Chief Financial Officer commented, “The strong industrial logic of a transaction between our firms was further supported by the alignment of culture and corporate objectives. CEMCO will fit seamlessly into the JFE Shoji group of businesses. We see significant synergy and scale potential in joining with the JFE Shoji Group. Both management and advisor teams worked collaboratively towards a successful transaction for our firms.”

Post close, CEMCO will operate identically to its current operations. CEMCO’s current management structure will remain in place and will allow CEMCO to provide the same high-level of service that its customers have come to expect. Integration related activities will be limited to back office corporate functions with no impact to customers, vendors, or business partners. Tom Porter, President of CEMCO and President of the SFIA commented, “The transaction is a great outcome for our customers, vendors, employees, and business partners.  We will be able to take our great service model forward as it is today.  JFE Shoji Group’s capital, supply chain, and industrial operations resources will be a great benefit to CEMCO. We are really excited to leverage JFE Shoji’s capabilities.  CEMCO employs over 500 team members throughout the U.S.  Our employees will be part of a larger business complex with even more opportunities.”

CEMCO, which has been owned and operated by the Poliquin family since 1981, is one of the largest independent manufacturers of steel framing and lath products in the U.S. Founded in 1974 and headquartered in The City of Industry, CA, CEMCO has manufacturing and distribution operations in City of Industry, CA; Pittsburg, CA; Denver, CO; and Fort Worth, Texas. The company manufactures structural and non-structural light gauge steel framing products, metal lath, proprietary fire-air-sound products and building accessories. With more than one thousand committed jobs a year, CEMCO supplies a full range of commercial projects, including healthcare, office, retail, education, municipal and transportation. SoFi Stadium, Loma Linda Hospital, Hollywood Paladium Residential Towers, U.S. Olympic Museum in Colorado Springs, East 5th Street Hotel in Austin, and the Chase Center in San Francisco are just a few notable projects. CEMCO is also a supplier of solar structural steel framing. For more information, please visit www.cemcosteel.com.

CEMCO’s transaction advisors included D.A. Davidson as sole financial advisor, DLA Piper for legal counsel, and KPMG for tax advisory. Mizuho served as financial advisor, Pillsbury Withrop Shaw Pittman as legal counsel, and Deloitte and Touche as tax and due diligence advisor for JFE Shoji America Holdings, Inc.

About JFE Shoji Corporation
JFE Shoji Corporation is working to establish a more stable revenue base by expanding both trade and business. In addition, JFE Shoji strengthens business foundation by accelerating collaborations between business bases based on global four key regions, which focuses on Japan, the Americas, China, ASEAN. By expanding supply chain from upstream to downstream with the focus on steel-related businesses, JFE Shoji opens new possibilities and pursue social and environmental issues such as carbon neutrality and a recycling-oriented society as opportunities for growth. While taking advantage of the management resources and information network, JFE Shoji is working on ESG management to lead during the times ahead. For more information on JFE Shoji Corporation visit https://www.jfe-shoji.co.jp/en/

About CEMCO®
California Expanded Metal Products Co. (CEMCO®) is the premier manufacturer of cold-formed steel framing and metal-lath products in the United States. Its product segments include Viper-X® and ViperStud Drywall Framing Products, Metal Lath, CEMCO® joint firestopping products, ProX Header®, Sure-Span® steel framing floor joist system, Sure-Board® for shear wall panels, and water-management products along with its SFIA Code Certified steel framing products. Founded in 1974, CEMCO is the leader in quality, service, and product development, and offers one of the broadest product lines available in cold-formed steel framing and metal lath and plastering products used for both the commercial and residential construction markets. For more information about CEMCO visit www.cemcosteel.com.

Cision

Cision

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