Steel Dynamics Completes Acquisition of Roanoke Electric Steel Corporation
13 April 2006 - 12:15AM
PR Newswire (US)
FORT WAYNE, Ind., April 12 /PRNewswire-FirstCall/ -- Today Steel
Dynamics, Inc. (NASDAQ:STLD) announced that it has completed its
previously announced acquisition of Roanoke Electric Steel
Corporation (NASDAQ:RESC). The transaction closed on April 11,
2006, immediately following approval of the transaction by Roanoke
stockholders. Pursuant to the Merger Agreement, Roanoke
stockholders received $9.75 in cash and 0.4 shares of SDI common
stock for each share of Roanoke stock outstanding at the effective
date of the merger. Based on 11,360,901 Roanoke shares outstanding
prior to the close of the transaction, Steel Dynamics paid $111
million in cash, issued 4,544,360 shares of registered Steel
Dynamics common stock and assumed $45 million in Roanoke debt,
which the company intends to retire within the next few days. The
cash portion of the purchase price was funded from the company's
current cash on hand. After giving effect to the issuance of shares
related to this transaction, Steel Dynamics will have a total of
48,611,177 shares of common stock outstanding. The combined
companies will now operate five electric-furnace mini mills with
annual production capacity of approximately 5 million tons, whose
steel products include flat-rolled, merchant bar, engineered bar,
and light structural steels as well as wide-flange beams and rail.
In addition, the company will now operate five facilities that
fabricate steel joists and decking used in non-residential
construction and two scrap-metal processing facilities. Steel
Dynamics now operates facilities in the states of Indiana,
Virginia, West Virginia, South Carolina, Florida, Ohio, and
Tennessee. Keith Busse, President and CEO of Steel Dynamics said,
"We believe this acquisition will significantly broaden our steel
product offerings and give us a much stronger platform to serve our
joist-and-deck customers. We will begin immediately to invest in
the joist-and-deck operations to improve their productivity and
product capabilities. We see excellent prospects for continued
volume growth in this segment of our business. At the same time, we
expect to make capital improvements in the Roanoke steel-producing
facilities to improve efficiency and ultimately to support higher
volumes of production. "We welcome Roanoke's employees to Steel
Dynamics and are confident that they will become strong
contributors to Steel Dynamics' continued growth and success,"
Busse concluded. Forward Looking Statements This press release
contains predictive statements about future events, including Steel
Dynamics' expectations of successful integration of Roanoke
operations into Steel Dynamics and expectations of the continued
viability and market position of the steel and other businesses
operated by the combined company. These statements are intended to
be made as "forward-looking," subject to many risks and
uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. Such predictive
statements are not guarantees of future performance, and actual
results could differ materially from our current expectations. We
refer you to SDI's detailed explanation of the many factors and
risks that may cause such predictive statements to turn out
differently, as set forth in our most recent Annual Report on Form
10-K and in other reports which we from time to time file with the
Securities and Exchange Commission, available publicly on the SEC's
Web site, http://www.sec.gov/ and on the company's Web site,
http://www.steeldynamics.com/ . DATASOURCE: Steel Dynamics, Inc.
CONTACT: Gary Heasley, Chief Financial Officer of Steel Dynamics,
Inc., +1-260-969-3555 Web site: http://www.steeldynamics.com/
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