SDI to Acquire 75% Stake in Texas-based United Steel Supply, LLC

SEATTLE (Scrap Monster): Steel Dynamics, Inc. (SDI) entered into a definitive agreement towards acquisition of majority of equity interest of Austin, Texas-headquartered United Steel Supply, LLC (USS). The transaction is subject to customary closing conditions and receipt of necessary regulatory approvals.

According to SDI press release, 75% of the equity interests of USS would be purchased for $134 million, which includes a cash consideration of $92 million and the balance $42 million in assumption of apportioned debt. The purchase price assumes total net working capital of $59 million, subject to customary adjustments post closing. SDI has an option to purchase the remaining 25% stake in the company in future, the press statement said.

Mark D. Millett, President and Chief Executive Officer noted that the partnership with USS offers strong cultural fit. He welcomed the employees and customers of the company to its fold. Incidentally, USS has four strategic distribution centers located in Mississippi, Indiana, Arkansas, and Oregon and employs nearly 38 non-union workers. The current owners Bret Curtis and Will Waldrip will continue to lead USS in their current capacities, Millet added.

The acquisition is expected to expand SDI’s painted Galvalume® value chain. Further, it will boost supply of flat roll steel to USS from SDI’s Columbus, Mississippi and Butler, DeKalb County, Indiana Flat Roll divisions.