Steel Dynamics, Inc. announced this week the completion of the acquisition of Heartland Steel Processing, LLC (formerly known as Companhia Siderurgica Nacional, LLC). The Terre Haute, Indiana-based facility produces higher-margin, flat roll steel through processing hot roll coils into pickle and oil, cold roll, and galvanized products.
The purchase price for Heartland was $400 million in cash, inclusive of $60 million of normalized working capital, and subject to customary transaction purchase price adjustments. The transaction was funded with available cash, with an expectation of near-term earnings and cash flow per share accretion.
The acquisition will expand Steel Dynamics’ annual flat roll steel shipping capacity to 8.4 million tons and total steel shipping capability to 12.4 million tons.