Steel Dynamics, Inc. has signed a deal to fully acquire Alabama-based Vulcan Threaded Products, Inc. for $126 million in cash, inclusive of $42 million in working capital. Regulatory approvals are expected to allow the deal to complete by August 2016.
Vulcan is the nation's biggest manufacturer and supplier of threaded rod products; the company also makes cold drawn and heat treated bar.
During 2015, as part of its target growth objectives, Steel Dynamics identified the need of higher-margin downstream business opportunities that utilize its steel products in their manufacturing processes. Vulcan fits Steel Dynamics’ acquisition model as a consumer of special-bar-quality products, currently produced at its Engineered Bar Products Division.