Steel Dynamics Inc. (SDI) has agreed to acquire The Techs, a Pennsylvania-based flat rolled galvanizing company, for $360 million. The acquisition is expected to close on or around July 2, 2007.
SDI hopes to expand its presence in the value-added steel coating market with the purchase of company, which includes three hot-dip galvanizing facilities in the Pittsburgh area: GalvTech, MetalTech, and NexTech, which have a combined annual galvanizing capacity of one million net tons.
"This additional business complements our three existing galvanizing lines at Butler and Jeffersonville, Indiana, which utilize steel sheet produced at our Butler mill," said Mark Millett, President and COO for the SDI's flat rolled and ferrous resources department. "Like our existing operations, these plants process both hot rolled and cold rolled steel in a range of gauges. This acquisition will approximately double SDI's hot-dip galvanizing capacity" Mr. Millett said.
The three Techs plants will operate under their current management as The Techs, an independent Steel Dynamics business unit reporting to Mr. Millett.
The Techs specializes in non-automotive applications, serving customers in the HVAC, commercial construction and consumer goods markets, with 85 percent of its customers located in the eastern US and Midwest.
SDI is the fifth largest US producer of carbon steel, operating five electric-furnace mini-mills and employing about 3,500. In 2006, about 50 percent of the company's shipments were flat rolled steel while the remainder was long products and fabricated products.