Steel Dynamics Completes Acquisition of Severstal Columbus
09/17/2014 - Steel Dynamics Inc. announced the completion of the acquisition of Severstal Columbus LLC, one of the newest and most technologically advanced mini-mills in North America.
As previously announced, the purchase price for Columbus was US$1.625 billion in cash, with customary transaction purchase price adjustments, and has been funded with approximately US$350 million of available cash, new senior unsecured notes in the amount of US$1.2 billion, and borrowings on the company's revolving credit facility.
"I would like to enthusiastically welcome the Columbus employees, community, and customers into the Steel Dynamics family," stated Mark D. Millett, chief executive officer. "The successful completion of the Columbus acquisition is an important milestone for Steel Dynamics and represents a significant step in the continuation of our growth strategy. The expected cash and earnings per share accretion and increased scale make this transaction a noteworthy strategic opportunity for our shareholders and all of our employees."
The acquisition of Columbus significantly expands and diversifies the company's steel operating base, increasing Steel Dynamics' annual steel shipping capacity to 11.0 million tons, a 40% increase. For the twelve months ended 30 June 2014, pro forma revenue was US$9.7 billion and pro forma Adjusted EBITDA was US$965 million(Note 1), with Columbus contributing US$2.2 billion and US$254 million, respectively. The additional exposure to the high-growth oil country tubular goods and automotive markets complements Steel Dynamics' product offerings. Additionally, Columbus is advantageously located in Mississippi to serve the high-growth markets in the Southern U.S. and Mexico, providing both geographic diversification and growth opportunities for Steel Dynamics.
"I would like to enthusiastically welcome the Columbus employees, community, and customers into the Steel Dynamics family," stated Mark D. Millett, chief executive officer. "The successful completion of the Columbus acquisition is an important milestone for Steel Dynamics and represents a significant step in the continuation of our growth strategy. The expected cash and earnings per share accretion and increased scale make this transaction a noteworthy strategic opportunity for our shareholders and all of our employees."
The acquisition of Columbus significantly expands and diversifies the company's steel operating base, increasing Steel Dynamics' annual steel shipping capacity to 11.0 million tons, a 40% increase. For the twelve months ended 30 June 2014, pro forma revenue was US$9.7 billion and pro forma Adjusted EBITDA was US$965 million(Note 1), with Columbus contributing US$2.2 billion and US$254 million, respectively. The additional exposure to the high-growth oil country tubular goods and automotive markets complements Steel Dynamics' product offerings. Additionally, Columbus is advantageously located in Mississippi to serve the high-growth markets in the Southern U.S. and Mexico, providing both geographic diversification and growth opportunities for Steel Dynamics.
