REDWOOD

SaS Lumber Company

HOI'iE OF SWIRLWOOD

TOpoz 1{70l

P. O. Box 243

-Speciolizing in Cuslom Milling-

N. J. Redmond, Elecred Director Blue Diqmond Gorp.' of Flintkore

Noel J. Redmond, president of Blue Diamond Corporation, was elected to the board of directors of The Flintkote Company, May 11, manufacturer of the broadest line of building products for home and industry in the United States.

Mr. Redmond's election to the Flintkote board took place at a special stockholders meeting in Boston at which Flintkote shareowners also approved acquisition of the West Coast gypsum producing company.

Flintkote Stockholders Approve Acquisition of Blue Diamond Gypsum

Stockholders of The Flintkote Company at a special meeting May 11 in Boston approved the previously-proposed acquisition of Blue Diamond Corporation, W_est Coast gypsum producer with headquarters in T.os Angeles. Terms-of the acquisition, which was expected to become effective on May 14, call for each of the 767,603 captta! $2-par shares of- Blue Diamond to be converted into .802 (802/1000) share of Flintkote $S-par common, or a total of. 615,617 Flintkote common shares.

Blue Diamond Corporation, incorporated in Delaware in 1931, is engaged primarily in the production of gypsum products, sand and gravel, and truck mixed concrete, -and in the fabrication and installation of reinforcing steel bars and collapsible wire spirals. It is considered to be the sixth largest pioducer of gypsum products in the United States and= the third largest producer of sand, gravel and truck mixed concrete in Southern California.

Blue Diamond has a total of 13 plants. These include plants for the production of gypsum and gypsum products it Blue Diamond, Nevada, about 25 miles southwest of Las Vegas; reinforcing steel fabrication plant at Los Angeles; sand and gravel plants at San Fernandg Valley, Antelope Valley, and San Gabriel Valley, all in California, and eight concrete batching plants in Southern California.

The-Flintkote Company, which is today producer of the broadest line of building products for home and industry in the country, will have with the Blue Diamond acquisition a total of 78 plants and mills located throughout the United States, in Canada, England and France.

"By merging with Blue Diamond, Flintkote will attain a step in the direction of expanding in its gypsum business lnto new market areas in accordance with our announced program of diversification," said I. J. Harvey, Jr.,

SPruce 3-2292

chairman of the board and chief executive officer of Flintkote.

"Blue Diamond's facilities for gypsum product manufacture," Mr. Harvey added, "will complement the present line of Flintkote products on the West Coast. In addition, Blue Diamond possesses valuable mineral resources in its sand and gravel operations and operates profitably in the reinforced iteel and truck mixed concrete business."

Mr. Harvey pointed out that, while Blue Diamond will be operated as a division of Flintkote, "no change is anticipated in the management and the identity of Blue Diimond as an important West Coast manufacturing operation will be continued."

Mr. Harvey stated that, including operations of Blue Diamond, Flintkote's sales volume for this year should establish an all-time record at approximately $200,000,000. For the year, 1958, Blue Diamond reported net sales of $20,387,000 and a net income of $1,463,000.