Steel Dynamics Acquires 75% of Texas Company

Steel Dynamics Acquires 75% of Texas Company

Steel Dynamics, Inc. announced the completion of the acquisition of a majority of the equity interests of United Steel Supply, LLC. United Steel Supply is headquartered in Austin, TX and is a leading distributor of painted Galvalume® flat roll steel used for roofing and siding applications.

Steel Dynamics purchased 75 percent of the equity interests of United Steel Supply for $134 million, comprised of cash consideration of $93 million and the assumption of $41 million in apportioned net indebtedness. Additionally, Steel Dynamics has an option to purchase the remaining 25 percent equity interests of United Steel Supply in the future.

“We enthusiastically welcome the employees and customers of United Steel Supply into the Steel Dynamics family,” stated Mark D. Millett, President and Chief Executive Officer. “This partnership provides an exciting opportunity to expand our painted Galvalume® distribution network. We look forward to growing with United Steel Supply and to providing our high-quality flat roll steel directly to this important market segment.”

United Steel Supply Acquisition Overview

United Steel Supply (“USS”) distributes painted and coated flat roll steel coils to the niche regional roll-former market, serving the roofing and siding industry. USS is headquartered in Austin, Texas, with four distribution centers strategically located in Mississippi, Indiana, Arkansas, and Oregon, and employs 38 non-union individuals.

As part of the transaction, current United Steel Supply owners Bret Curtis and Will Waldrip will continue to lead USS in their current capacities as President and Vice President, respectively. Under Messrs. Curtis and Waldrip’s leadership, United Steel Supply has achieved an extraordinary 26 percent compounded annual revenue growth rate since inception in 2007.

New Distribution Channel

Due to the smaller individual order size and extensive service levels required by USS’s large and diverse customer base, this transaction adds a new, complementary distribution channel for Steel Dynamics and connects it to a rapidly growing industry segment with customers that do not traditionally purchase steel directly from a steel producer. Steel Dynamics expects this transaction to provide continued growth in one of its highest-margin flat roll steel products. Steel Dynamics’ Columbus Mississippi and Butler Indiana Flat Roll divisions already supply flat roll steel to USS, and this volume is expected to grow.

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