Steel Dynamics, Inc. today announced the completion of the acquisition of Vulcan Threaded Products, Inc. The purchase price for Vulcan and its real estate assets is $114 million on a debt free, cash free basis, including $30 million of estimated working capital, and has been funded with available cash. The transaction is expected to be immediately accretive to 2016 earnings and cash flow per share.
"The successful completion of the Vulcan acquisition represents a step towards one of our growth objectives, the pursuit of higher-margin downstream business opportunities that utilize our steel products in their manufacturing processes,” said Mark D. Millett, SDI’s President and Chief Executive Officer. “This strategy is intended to reduce volatility during both strong and weak market cycles, given steel raw material supply optionality. During weak steel demand environments these businesses could pull-through volume internally from our own mills, thus increasing SDI's steel mill utilization. As a consumer of special-bar-quality products currently produced at our Engineered Bar Products Division, Vulcan depicts this model and fits well within our core operating strengths."
Vulcan, based outside of Birmingham, Alabama, produces threaded rod products along with cold drawn and heat treated bar. Vulcan employs 225 people and shipped approximately 89,000 tons during the trailing 12-month period ended March 31, 2016.
Vulcan, based outside of Birmingham, Alabama, produces threaded rod products along with cold drawn and heat treated bar. Vulcan employs 225 people and shipped approximately 89,000 tons during the trailing 12-month period ended March 31, 2016.