JFE Shoji Corp. has entered into a definitive agreement to acquire all the outstanding shares of California Expanded Metal Products Co. from the Poliquin family ownership group. The transaction is expected to close in late September 2022 following customary closing conditions and regulatory approval.

“JFE Shoji America has a disciplined acquisition model,” remarked Junji Yamada, CEO of JFE Shoji America Holdings. “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,” said Raymond E. (Ted) Poliquin, CEO and Chairman of the Board at CEMCO. “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. 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.”

“The strong industrial logic of a transaction between our firms was further supported by the alignment of culture and corporate objectives,” commented Scott Yessner, CEMCO's Chief Financial Officer. “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. “The transaction is a great outcome for our customers, vendors, employees and business partners,” commented Tom Porter, president of CEMCO and President of the SFIA. “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 more than 500 team members throughout the U.S. Our employees will be part of a larger business complex with even more opportunities.”

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.