Steel Dynamics Inc. (SDI) announced Monday its plans to purchase scrap recycling company, OmniSource Corp., for approximately $885 million in cash and stock.
Already approved by the board of directors at both companies, the deal is expected to close in November, valued at a total of slightly more than $1 billion, including about $210 million in liabilities and debts.
Indiana-based OmniSource Corp. will operate as a wholly owned subsidiary of Steel Dynamics, keeping its focus on ferrous and nonferrous scrap processing. OmniSource's current president and CEO, Danny Rifkin, will be the president and CEO of the subsidiary as well as the executive VP at Steel Dynamics, and will be named to the company's Board of Directors.
Keith Busse, SDI's chairman and CEO, commented, "This acquisition creates a significant new business platform for SDI and represents a quantum leap as it would regard strategic expansion into the steel scrap and recycled metals sector, which is an important element of our overall growth plan."