FORT WAYNE, Ind., Sept. 14, 2015 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today announced that it purchased from
Consolidated Systems, Inc. ("CSi"), certain of its steel decking
facilities (including associated assets) and net working capital of
approximately $30 million, for a
purchase price of $45 million in
cash. The transaction, which is valued below asset
replacement cost, is expected to be accretive to 2015 earnings and
cash flow per share. These assets will become a part of Steel
Dynamic's fabrication operations through its wholly owned
subsidiary, New Millennium Building Systems, LLC ("NMBS").
Mark Millett, President and Chief
Executive Officer of Steel Dynamics, said, "Based on our past
strategic geographic growth in our fabrication platform, combined
with the steadily improving construction sector, our fabrication
operations achieved record profitability in the second quarter 2015
and have already surpassed 2014 record setting annual profits.
This purchase will further support the success of this
platform and create shareholder value. The transaction is a
further step in our growth strategy, and will enhance New
Millennium's position as a leading North American provider of steel
joist and decking, while also providing an accelerated avenue to
new steel deck product offerings and additional cold roll and
galvanized flat roll steel pull-through volume for our Columbus
Flat Roll Division."
"We are excited about the combination of the CSi decking
business with New Millennium," stated, Jim
Anderson, Chief Operating Officer of NMBS. "CSi is a
well-regarded market participant and will provide us with the
opportunity for unique product, market and business synergies. We
enthusiastically welcome our new CSi employees and customers into
our family."
The purchased assets include three decking facilities located in
Memphis, Tennessee; Phoenix, Arizona; and Terrell, Texas. Producing both standard
and premium specialty deck profiles, these assets represented over
8% of 2014 domestic steel decking market share. The new
locations will allow for enhanced geographic reach into the
southwestern and western markets, while the higher-margin specialty
deck profiles will further diversify NMBS product offerings.
The production of specialty deck is currently planned to be
concentrated in Memphis, where a
paint line is already in place. Business and commercial
integration with NMBS will begin immediately.
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 $8.8 billion in 2014, over 7,400 employees, and
manufacturing facilities primarily located throughout the United States (including six steel mills,
eight steel coating facilities, an iron production facility,
approximately 90 metals recycling locations and six steel
fabrication plants).
Forward-Looking Statement
This press release contains some predictive statements about
future events, including statements related to conditions in the
steel and metallic scrap markets, Steel Dynamics' revenues, costs
of purchased materials, future profitability and earnings, and the
operation of new or existing facilities. These statements are
intended to be made as "forward-looking," subject to many risks and
uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. These statements speak
only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
the effects of uncertain economic conditions; (2) cyclical and
changing industrial demand; (3) changes in conditions in any of the
steel or scrap-consuming sectors of the economy which affect demand
for our products, including the strength of the non-residential and
residential construction, automotive, appliance, pipe and tube, and
other steel-consuming industries; (4) fluctuations in the cost of
key raw materials (including steel scrap, iron units, and energy
costs) and our ability to pass-on any cost increases; (5) the
impact of domestic and foreign import price competition; (6)
unanticipated difficulties in integrating or starting up new or
acquired businesses; (7) risks and uncertainties involving product
and/or technology development; and (8) occurrences of unexpected
plant outages or equipment failures.
More specifically, we refer you to SDI's more detailed
explanation of these and other factors and risks that may cause
such predictive statements to turn out differently, as set forth in
our most recent Annual Report on Form 10-K, in our quarterly
reports on Form 10-Q or in other reports which we from time to
time file with the Securities and Exchange Commission. These are
available publicly on the SEC website, www.sec.gov, and on the
Steel Dynamics website, www.steeldynamics.com.
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SOURCE Steel Dynamics, Inc.