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Note 16 - Disposition of Assets

9 Months Ended

Sep. 30, 2021

Sale of Operation, Disclosure [Text Block]

16.

Disposition of Assets:

On September 17, 2021, the Company sold substantially all of the assets related to its Detroit operation to Venture Steel (U.S.), Inc. for $58.4 million plus a working capital adjustment, estimated at $13.5 million, to be settled in late 2021 or early 2022. The sale price included $9.5 million for property and equipment and the remaining assets and liabilities were sold at fair value. The proceeds of the sale will be used for working capital needs as well as future acquisitions and investments in organic growth opportunities. The Detroit operation was primarily focused on the distribution of carbon flat-rolled steel to domestic automotive manufacturers and their suppliers. The sale of the Detroit operation does not indicate a strategic shift in the Company’s operations. The gain on the sale net of associated professional and legal fees totaled $3.5 million and are included in “Administrative and general” in the Corporate segment in the Consolidated Statements of Comprehensive Income (Loss). The operating results of the Detroit operation were included in the flat-products segments prior to the disposition.