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Steel Dynamics to Acquire Operations of Heartland Flat Roll for USD 400m
Thursday 17 May 2018

17 May 2018 - Indiana, US-based steel producer Steel Dynamics, Inc. (NASDAQ: STLD) has entered into a definitive agreement to acquire Indiana-based flatroll steel operations Heartland from CSN Steel, S.L.U. to expand annual flat roll shipping capacity, the company said.
CSN Steel, S.L.U. is a wholly-owned subsidiary of Brazil-based steel manufacturer Companhia Siderurgica Nacional (CSN).
Steel Dynamics has agreed to purchase Heartland for USD 400m in cash inclusive of USD 60m of normalised working capital. Steel Dynamics believes the purchase price approximates current replacement value.
The transaction is expected to be accretive to near-term earnings and cash flow per share. Steel Dynamics said the purchase price will be paid in cash from available reserves.
This acquisition will expand Steel Dynamics' annual flat roll steel shipping capacity to 8.4m tons and total shipping capability to 12.4 m tons.
The additional exposure to lighter-gauge and greater width flat roll steel offerings will broaden the company's value-added product portfolio, enhancing Steel Dynamics position as a leading North American steel producer.
Steel Dynamics is a domestic steel producers and metals with facilities located throughout the United States and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck.
In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.
Heartland produces various types of higher-margin, flat roll steel by further processing hot roll coils into pickle and oil, cold roll, and galvanized products.
Date Published: 17/05/2018
Target: Heartland
Country: USA
Deal Size: 400m (USD)
Sector: Metals/Mining
Type: Corporate acquisition
Financing: Cash
Status: Agreed
Vendor: CSN Steel
Buyer: Steel Dynamics