Steel Dynamics unit agrees to acquire Recycle South in $500M deal
SAN FRANCISCO, May 09, 2008 (Thomson Financial via COMTEX) -- By Staff Reporter
Company: Steel Dynamics, Inc. (STLD)
Steel Dynamics Inc. said late Thursday its OmniSource Corp. subsidiary has agreed to acquire the remaining equity interests in Recycle South in a deal valued at $500 million.
OmniSource already owns a 25% stake in Recycle South.
Current Recycle South owners will receive 3.94 million shares of Steel Dynamics common stock, valued at $138 million, along with $232 million in cash.
The deal includes the assumption of certain liabilities, including net debt, which are expected to total around $135 million.
Spartanburg, S.C.-based Recycle South, a scrap metal recycling company, employs 600 people in 19 locations in North Carolina, South Carolina, and Georgia.
On an annualized basis, the company generated revenue of $670 million.
The company will operate as a division of OmniSource and will be called OmniSource Southeast. As part of OmniSource, all current management will remain in place.
Shares of Fort Wayne, Ind.-based Steel Dynamics closed at $36.17. Gabriel Madway gm
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Company: Steel Dynamics, Inc. (STLD)
