Steel Dynamics Completes Acquisition of Vulcan Threaded Products
FORT WAYNE, Ind., Aug. 1, 2016 - Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced the completion of the acquisition of Vulcan Threaded Products, Inc. ("Vulcan"). The purchase price for Vulcan and its real estate assets is $114 million on a debt free, cash free basis, including $30 million of estimated working capital, and has been funded with available cash. The transaction is expected to be immediately accretive to 2016 earnings and cash flow per share.
"We welcome the employees and customers of Vulcan into the Steel Dynamics family," stated Mark D. Millett, President and Chief Executive Officer. "The successful completion of the Vulcan acquisition represents a step towards one of our growth objectives, the pursuit of higher-margin downstream business opportunities that utilize our steel products in their manufacturing processes. This strategy is intended to reduce volatility during both strong and weak market cycles, given steel raw material supply optionality. During weak steel demand environments these businesses could pull-through volume internally from our own mills, thus increasing SDI's steel mill utilization. As a consumer of special-bar-quality products currently produced at our Engineered Bar Products Division, Vulcan depicts this model and fits well within our core operating strengths."
Vulcan, based outside of Birmingham, Alabama, is the nation's largest manufacturer and supplier of threaded rod products, and also produces cold drawn and heat treated bar. Vulcan employs 225 people and shipped approximately 89,000 tons during the trailing twelve month period ended March 31, 2016.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with annual sales of $7.6 billion in 2015, approximately 7,700 employees, and manufacturing facilities primarily located throughout the United States (including six electric-arc-furnace steel mills, ten steel coating lines, an iron production facility, approximately 75 metals recycling locations and eight steel fabrication plants).
SOURCE Steel Dynamics, Inc.
CONTACT:
Tricia Meyers,
Investor Relations Manager,
+1.260.969.3500
Web Site: www.steeldynamics.com
