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Issue Time:2018-07-09

Steel Dynamics, Inc. (NASDAQ/GS: STLD) announced the completion of the acquisition of Heartland Steel Processing, LLC (formerly known as Companhia Siderurgica Nacional, LLC). Located in Terre Haute, Indiana, Heartland produces various types of higher-margin, flat roll steel by further processing hot roll coils into pickle and oil, cold roll, and galvanized products. As previously announced, the purchase price for Heartland was $400 million in cash, inclusive of $60 million of normalized working capital, and subject to customary transaction purchase price adjustments. The transaction was funded with available cash, with an expectation of near-term earnings and cash flow per share accretion.

“We enthusiastically welcome the employees and existing customers of Heartland into the Steel Dynamics family,” stated Mark D. Millett, President and Chief Executive Officer. “The successful completion of the Heartland acquisition represents another step toward one of our growth initiatives, to further increase value-added product and market diversification. We believe Heartland, together with our Midwest flat roll operations, will provide numerous synergies and a tremendous amount of operating flexibility and optionality. We look forward to bringing this strategy to fruition.”

The acquisition will expand Steel Dynamics’ annual flat roll steel shipping capacity to 8.4 million tons and total steel shipping capability to 12.4 million tons. The additional exposure to lighter-gauge and greater width flat roll steel offerings will broaden the Company’s value-added product portfolio, enhancing Steel Dynamics position as a leading North American steel producer.