Steel Dynamics said it bought Vulcan and its real estate for US$114 million in cash. The deal includes an estimated US$30 million in working capital. The transaction is expected to be immediately accretive to 2016 earnings, Steel Dynamics said.

In a statement, Steel Dynamics president and chief executive Mark Millett said the deal is in keeping with a strategy to find higher-margin opportunities that can use steel from its mills.

“This strategy is intended to reduce volatility during both strong and weak market cycles, given steel raw material supply optionality,” Millett said.

“During weak steel demand environments these businesses could pull-through volume internally from our own mills, thus increasing SDI's steel mill utilization. As a consumer of special bar quality products currently produced at our engineered bar products division, Vulcan depicts this model and fits well within our core operating strengths."

Based in Alabama, Vulcan shipped about 89,000 of products between 1 April 2015 and 31 March 2016. In addition to threaded rod, it makes cold drawn and heat treated bar. It employs 225 people.