Alloy Steel International & Kostecki Sign Merger Agreement

Perth Australia based wear resistan steel plate supplier Alloy Steel International Inc and Kostecki family owned Kostecki Brokerage Pty Ltd have entered into a definitive merger agreement under which Kostecki Brokerage Pty Ltd will acquire the non-controlling shareholders interest in the Company in an all cash transaction. Under the agreement, the Company's shareholders, excluding the Kostecki family and its affiliated entities, will receive AUD 2.55 per share in cash upon completion of the transaction for a total implied market capitalization of the Company of approximately AUD 40.6 million.

The Special Committee, comprised of independent members of the Board of Directors of the Company was formed in May 2021 to review the proposal from the Kostecki family and, with the assistance of independent legal and financial advisors, completed a thorough review of the proposal, unanimously concluding that the transaction with the Kostecki family was in the best interests of the Company's shareholders. Based on the unanimous recommendation of the Special Committee, the agreement was also approved by the full Board.

Jaffe Raitt Heuer & Weiss, P.C. served as legal advisor to the Company. Conner & Winters, LLP served as legal advisor to the Special Committee. Davis Graham & Stubbs LLP served as legal advisor to Kostecki Brokerage Pty Ltd.

With over 30 years of experience, Alloy Steel International is a vertically integrated Australian owned and operated company. Alloy Steel International’s 9,000 square meter state of the art Steel Mill and Manufacturing Facility in MALAGA WA combines both the milling of Chromium Carbide Wear Plate and the fabrication of field-ready applications.