FORT WAYNE, Ind., Aug. 1,
2016 /PRNewswire/ -- 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).
Forward-Looking Statement
This press release contains some predictive statements about
future events, including statements related to the operation of new
or existing facilities. These statements, which we generally
precede or accompany by such typical conditional words as
"anticipate," "intend," "believe," "estimate," "plan," "seek,"
"project" or "expect," or by the words "may," "will," or "should,"
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 Steel Dynamics' 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 under the headings
Special Note Regarding Forward-Looking Statements and Risk Factors,
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.