Columbus, Ohio-based diversified metals manufacturer Worthington Industries, Inc. and metal processor Marubeni-Itochu Steel America Inc. (MISA) have reached a principle agreement to combine light gauge steel framing manufacturer ClarkWestern Building Systems and the US' largest manufacturer of metal framing and finishing products, Dietrich Metal Framing, into a newly-formed joint venture.
In the new venture, MISA will hold a 75 percent interest, while Worthington Industries will acquire a 25 percent interest, however, Worthington will also acquire the assets of the non-automotive service center business of MISA Metals, Inc. (MMI) consisting of three steel processing facilities located in Ohio and Tennessee. The deal is expected to be signed by the end of the month.
"We are making two businesses stronger by combining them in a joint venture," John McConnell, Chairman and CEO of Worthington Industries said. "The economic downturn has been particularly difficult for the construction industry and by creating the joint venture, we best position them to be profitable now, and for success when the market begins to recover."
Under the new joint venture however, seven of Dietrich's 13 facilities will be closed, as well as one ClarkWestern Building Systems facility.