Insteel Industries Closes on Acquisition of American Spring Wire’s PC Strand Business
08/18/2014 - Insteel Industries Inc. announced that its wholly-owned subsidiary, Insteel Wire Products Company, has completed the acquisition of substantially all of the assets associated with the prestressed concrete strand (PC strand) business of American Spring Wire Corporation (ASW) for a purchase price of approximately US$36.0 million, subject to certain post-closing adjustments.
The ASW Acquisition was completed pursuant to the previously-announced asset purchase agreement between Insteel and ASW dated 9 August 2014.
ASW is North America's largest manufacturer of valve and commercial quality spring wire. ASW manufactures PC strand at facilities located in Texas and Georgia. For the twelve months ended 30 June 2014, ASW's sales of PC strand were US$67.8 million.
Under the terms of the purchase agreement, Insteel acquired, among other assets, the accounts receivable and inventories related to ASW's PC strand business, the production equipment at ASW's facility in Houston, Texas, and the production equipment and facility in Newnan, Ga. Insteel will lease the Houston facility from ASW. The purchase price is subject to an adjustment to be determined based upon the closing working capital balance. The transaction was funded from cash on hand and borrowings on Insteel's US$100.0 million revolving credit facility. As of 15 August 2014, US$13.6 million of borrowings were outstanding on the credit facility after funding the transaction.
Insteel is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets PC strand and welded wire reinforcement, including engineered structural mesh (ESM), concrete pipe reinforcement and standard welded wire reinforcement. Insteel's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Headquartered in Mount Airy, N.C, Insteel operates eleven manufacturing facilities located in the United States.
ASW is North America's largest manufacturer of valve and commercial quality spring wire. ASW manufactures PC strand at facilities located in Texas and Georgia. For the twelve months ended 30 June 2014, ASW's sales of PC strand were US$67.8 million.
Under the terms of the purchase agreement, Insteel acquired, among other assets, the accounts receivable and inventories related to ASW's PC strand business, the production equipment at ASW's facility in Houston, Texas, and the production equipment and facility in Newnan, Ga. Insteel will lease the Houston facility from ASW. The purchase price is subject to an adjustment to be determined based upon the closing working capital balance. The transaction was funded from cash on hand and borrowings on Insteel's US$100.0 million revolving credit facility. As of 15 August 2014, US$13.6 million of borrowings were outstanding on the credit facility after funding the transaction.
Insteel is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets PC strand and welded wire reinforcement, including engineered structural mesh (ESM), concrete pipe reinforcement and standard welded wire reinforcement. Insteel's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Headquartered in Mount Airy, N.C, Insteel operates eleven manufacturing facilities located in the United States.
