Steel Dynamics Expands Structurals Business Through Acquisition
09/15/2015 - Steel Dynamics Inc. (SDI) is acquiring three steel decking production facilities for US$45 million, allowing it to add to its product offerings and to expand its reach into the southwestern and western U.S. markets, the company has announced.
The facilities are being acquired from South Carolina-based Consolidated Systems Inc. and will be integrated with SDI’s structural steel business, New Millennium Building Systems. The facilities are in Memphis, Tenn.; Phoenix, Ariz.; and Terrell,
Texas. They produce both standard and premium specialty deck profiles.
“The transaction is a further step in our growth strategy, and will enhance New Millennium's position as a leading North American provider of steel joist and decking, while also providing an accelerated avenue to new steel deck product offerings and additional cold roll and galvanized flat roll steel pull-through volume for our Columbus flat roll division," said SDI president and CEO Mark Millett in a statement.
According to SDI, the facilities represent more than 8 percent of 2014 U.S. steel decking market share.
SDI said the acquisition diversifies its product offerings, giving it the capability of producing higher-margin specialty deck profiles. Specialty deck production is to be concentrated in Memphis, where a paint line is already in place, SDI said.
"CSi is a well-regarded market participant and will provide us with the opportunity for unique product, market and business synergies,” said New Millennium COO Jim Anderson in a statement.
Texas. They produce both standard and premium specialty deck profiles.
“The transaction is a further step in our growth strategy, and will enhance New Millennium's position as a leading North American provider of steel joist and decking, while also providing an accelerated avenue to new steel deck product offerings and additional cold roll and galvanized flat roll steel pull-through volume for our Columbus flat roll division," said SDI president and CEO Mark Millett in a statement.
According to SDI, the facilities represent more than 8 percent of 2014 U.S. steel decking market share.
SDI said the acquisition diversifies its product offerings, giving it the capability of producing higher-margin specialty deck profiles. Specialty deck production is to be concentrated in Memphis, where a paint line is already in place, SDI said.
"CSi is a well-regarded market participant and will provide us with the opportunity for unique product, market and business synergies,” said New Millennium COO Jim Anderson in a statement.
