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Mitsui Completes Steel Technologies Acquisition
06/04/2007 - Mitsui & Co. has completed its acquisition of Steel Technologies in an all-cash transaction valued at approximately $534 million, including retained debt of $137 million.
Mitsui & Co., Ltd. has completed its acquisition of Steel Technologies Inc. The all-cash transaction, completed through wholly owned subsidiary Mitsui & Co. (U.S.A.), Inc., was valued at approximately $534 million, including retained debt of $137 million.
Steel Technologies will operate as a separate, wholly owned subsidiary. The current management team will be led by CEO Bradford T. Ray, who will maintain responsibility for the company's performance and growth strategies. Under the terms of the merger agreement, Steel Technologies’ shareholders will receive $30 per share in an all-cash transaction.
Steel Technologies' management will work closely with Mitsui USA's Iron and Steel Products Division to capitalize on business synergies and expand the product and service offerings. From a sourcing standpoint, the combined purchasing power of both Steel Technologies and Mitsui will provide the foundation to further strengthen and grow strategic initiatives and partnerships with the domestic mills. The combined purchasing expertise will also provide the ability to strategically source both commodity and niche items to meet customer needs.
"Steel Technologies becomes an important element in implementing our North American business strategy and enhancing our steel processing value chain," said Ichizo Kutsukake, Senior Vice President of Mitsui USA's Iron and Steel Products Division. "This highly regarded addition to Mitsui USA will enable us to efficiently meet our customers' ever-increasing demands and expectations, as well as provide capacity to pursue new opportunities."
Steel Technologies processes flat-rolled steel to specified thickness, width, temper, finish and shape requirements for a wide range of applications. The company, including its joint ventures, operates 24 production facilities located throughout the United States, Canada and Mexico.
Mitsui USA is the largest wholly owned subsidiary of Mitsui & Co., Ltd., a diversified global trading, investment and service enterprise. Mitsui USA has operations in iron and steel products and raw materials, infrastructure projects, machinery, information technology, chemicals, plastics, energy and consumer products, among others.
