Insteel acquires certain assets of Ivy Steel & Wire for $51 million

Monday, 22 November 2010 17:54:47 (GMT+3)   |  
       

On November 19, Mount Airy, North Carolina, US-based Insteel Industries, a manufacturer of steel wire reinforcing products for concrete construction applications, announced that its wholly-owned subsidiary Insteel Wire Products Company has purchased certain of the assets of Houston, Texas-based Ivy Steel & Wire Inc. for a price of approximately $51.1 million, subject to certain post-closing adjustments.

Ivy is a division of welded wire reinforcement and wire products provider Oldcastle, Inc., which is the US holding company of Ireland-based building materials group CRH plc. The company operates five facilities, which are located in Arizona, Florida, Missouri, Pennsylvania and Texas. In 2009, Ivy reported net sales of $104.3 million.

According to an Insteel statement, under the terms of the purchase agreement, Insteel acquired, among other assets, certain of Ivy's inventories and its production facilities located in Hazleton, Pennsylvania; Jacksonville, Florida; Kingman, Arizona; and St. Joseph, Missouri, in addition to the production equipment located at its Houston, Texas facility for $37.6 million of cash and a $13.5 million secured subordinated note payable to Ivy over five years. The cash portion of the purchase price was funded from cash and cash equivalents on hand. 

"The addition of Ivy's facilities to our existing geographic footprint enhances Insteel's competitiveness in the Northeast, Midwest and Florida markets, in addition to providing a platform to serve west coast markets more effectively," commented H.O. Woltz III, Insteel president and chief executive officer.


Similar articles

US drawn wire imports up 24.6 percent in January

13 Mar | Steel News

France’s steel product import value down 17.8 percent in 2023

08 Mar | Steel News

France’s steel product export value down 22.4 percent in 2023

08 Mar | Steel News

US drawn wire exports down 23.3 percent in December

29 Feb | Steel News

Turkey’s BMS receives galvanized wire orders from UK

26 Feb | Steel News

Wire consumption in Mexico down 7.8 percent in December

16 Feb | Steel News

US drawn wire imports down 6.1 percent in December

12 Feb | Steel News

France’s steel product import value down 18.4 percent in Jan-Nov

09 Feb | Steel News

France’s steel product export value down 23.2 percent in Jan-Nov

08 Feb | Steel News

US assigns zero preliminary dumping margin for PC strand from Thailand

05 Feb | Steel News