SDI Purchases 75% Stake in United Steel Supply, LLC

SEATTLE (Scrap Monster): Steel Dynamics, Inc. announced that it has completed acquisition of majority stake in the Austin, Texas-based United Steel Supply, LLC (USS). It must be noted that the acquisition was announced in early February this year.

The company purchased 75% of equity interests of USS for $134 million, which includes a cash consideration of $92 million and the balance $42 million in assumption of apportioned debt. The purchase price also includes an assumption of total net working capital of $59 million. Furthermore, SDI is also left with the option to purchase the remaining 25% stake in the company in future.

The company press release issued by SDI noted that the current owners of USS-Bret Curtis and Will Waldrip will continue to lead the company in their current capacities as President and Vice-President respectively. The Austin headquarters along with the four strategically located distribution centers in Mississippi, Indiana, Arkansas, and Oregon will henceforth become part of SDI, thereby adding nearly 38 non-union individuals to its fold..

Mark D. Millett, President and Chief Executive Officer welcomed the employees and customers of United Steel Supply into the Steel Dynamics family. The new partnership will result in immense growth opportunities for its high-quality flat roll steel products, through significant expansion of its painted Galvalume portfolio, which in turn is the principal product distributed by USS.