NEW YORK, June 14, 2012 (GLOBE NEWSWIRE) -- Globe Specialty Metals, Inc. (Nasdaq:GSM) (the "Company") today announced the closing of its acquisition of Becancour Silicon Metal Inc's. ("BSI") 51% equity interest in Quebec Silicon Limited Partnership ("QSLP") which owns a 47,000 MT silicon metal plant in Becancour, Quebec, Canada as well as certain leases of quartzite mines in Canada and other working capital assets. The total cash purchase price for this acquisition is approximately a net of $34 million. Globe previously provided BSI $4.2 million of debtor-in-possession financing which was applied against the purchase price.

Globe will operate QSLP's silicon metal plant and will purchase approximately 51% of its finished goods output at a price approximately equal to the fully loaded cost of production and sell the material to third party customers. Dow Corning Inc. has the right to purchase the other 49% of the plant's output at a price approximately equal to the fully loaded cost of production. This arrangement is similar to the Company's existing joint venture with Dow Corning at its Alloy, West Virginia plant. Globe believes that it can achieve meaningful cost reductions and operating efficiencies at the plant, primarily involving raw materials and operations, that should benefit Globe and Dow Corning.

The acquisition was financed using $31.8 million from the Company's new $300 million revolving credit facility. The facility includes 14 banks and is led by Fifth Third Bank and Bank of America Merrill Lynch and provides significant capital to finance acquisitions, growth initiatives, stock buy-backs, working capital and general corporate purposes. After completing this acquisition the facility has approximately $172 million of availability, plus an accordion feature of $125 million, and the Company had $140.7 million of cash on hand at March 31, 2012.

Globe Executive Chairman Alan Kestenbaum commented, "Globe continues to build on its track record of growing through low-cost, accretive and strategic acquisitions. The cost of this acquisition, on a per ton basis, is less than one third the cost of building new capacity. Acquiring these assets makes Globe the only merchant producer of silicon metal in all of North America. It also provides us the opportunity of sales and earnings growth and will allow us to apply our operating expertise and captive supply of critical and high quality raw materials to lower the plant's production costs and improve operating efficiencies. This is the first transaction financed by our new credit facility which adds significant flexibility and capacity as we pursue the future growth of our Company. We remain actively engaged in numerous growth initiatives and intend to continue our acquisition track record. We expect that the current environment will continue to create distressed investment and growth opportunities for us, as we capitalize on our operating expertise, captive supply of critical raw materials, balance sheet and liquidity."

Conference Call

Alan Kestenbaum and Mal Appelbaum will review the acquisition during a conference call tomorrow, June 15, 2012, at 9:00 a.m. Eastern Time. The dial-in number for the call is 877-293-5491. International callers should dial 914-495-8526.  Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available on the GSM website at http://investor.glbsm.com. Click on the June 15, 2012 Conference Call link to access the call.

About Globe Specialty Metals

Globe Specialty Metals, Inc. is among the world's largest producers of silicon metal and silicon-based specialty alloys, critical ingredients in a host of industrial and consumer products with growing markets. Customers include major silicone chemical, aluminum and steel manufacturers, auto companies and their suppliers, ductile iron foundries, manufacturers of photovoltaic solar cells and computer chips, and concrete producers. The Company is headquartered in New York City. For further information please visit our web site at www.glbsm.com.

Forward-Looking Statements

This release may contain ''forward-looking statements'' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as ''anticipates,'' ''intends,'' ''plans,'' ''seeks,'' ''believes,'' ''estimates,'' ''expects'' and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the current expectations and assumptions of Globe Specialty Metals, Inc. (the "Company") regarding its business, financial condition, the economy and other future conditions.

Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the forward-looking statements. The Company cautions you therefore that you should not rely on any of these forward-looking statements as statements of historical fact or as guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions including, among others, changes in metals prices; increases in the cost of raw materials or energy; competition in the metals and foundry industries; environmental and regulatory risks; ability to identify liabilities associated with acquired properties prior to their acquisition; ability to manage price and operational risks including industrial accidents and natural disasters; ability to manage foreign operations; changes in technology; and ability to acquire or renew permits and approvals.

Any forward-looking statement made by the Company or management in this release speaks only as of the date on which it or they make it. Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, unless otherwise required to do so under the law or the rules of the NASDAQ Global Market.

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