Steel Dynamics, Inc. today announced that it has entered into a definitive agreement to acquire a majority of the equity interest of United Steel Supply, LLC. United Steel Supply is headquartered in Austin, Texas and is a leading distributor of painted Galvalume flat roll steel used for roofing and siding applications.
Steel Dynamics has agreed to purchase 75 percent of the equity interests of United Steel Supply for $134 million, comprised of cash consideration of $92 million and the assumption of $42 million in apportioned debt. The purchase price assumes total net working capital of $59 million, which is subject to customary post-closing adjustments. Additionally, Steel Dynamics has an option to purchase the remaining 25 percent equity interest of United Steel Supply in the future.
As part of the transaction, current United Steel Supply owners Bret Curtis and Will Waldrip will continue to lead USS in their current capacities as President and Vice President, respectively.
In a statement, Steel Dynamics said it expects this transaction to provide continued growth in one of its highest-margin flat roll steel products. Steel Dynamics' Columbus Mississippi and Butler Indiana Flat Roll divisions already supply flat roll steel to USS, and this volume is expected to grow.