Steel Dynamics, Inc. (NASDAQ/GS: STLD) has announced its definitive agreement to acquire the remaining 55% equity interest in New Process Steel, L.P. ("New Process"), a prominent North American metal products manufacturer and supply-chain solutions provider. This move is aimed at expanding exposure to value-added manufacturing opportunities while continuing to serve long-standing flat rolled steel customer needs.
New Process Steel, headquartered in Houston, Texas, with manufacturing locations in Mexico and the United States, has approximately 1,275 employees and is currently the single largest flat roll steel customer of Steel Dynamics. The company was purchased in 1952 by Gene Fant, and under the leadership of Richard Fant, the current CEO, it has experienced significant growth, modernization, and diversification.
The transaction is subject to customary closing conditions and regulatory approvals. Steel Dynamics, known for its circular manufacturing model that emphasizes lower-carbon-emission, quality products with recycled scrap as the primary input, is one of the largest domestic steel producers and metal recyclers in North America. It also has downstream steel fabrication operations and is investing in aluminum operations to further diversify its product offerings.
This acquisition represents a strategic step for both companies, as it is expected to provide New Process with opportunities for value-added manufacturing growth and enhance Steel Dynamics' position in the market. As a result of these announcements, the company's shares have moved 0.6% on the market, and are now trading at a price of $126.66. For more information, read the company's full 8-K submission here.
