Fort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) has acquired a Terre Haute steel producer. The deal for Heartland Steel, a subsidiary of Brazil-based CSN Steel S.L.U., is valued at $400 million. Steel Dynamics says the addition boosts its flat roll steel production capacity from 8.4 million tons to 12.4 million tons.
CSN took on Heartland Steel Inc. in Vigo County 17 years ago for $175 million.
Chief Executive Officer Mark Millett says the deal "levers our core strengths, and at the same time fulfills our initiatives to further increase value-added product and market diversification. We look forward to welcoming the Heartland employees and customers into the Steel Dynamics family, and working with them to drive future growth and success." He says the acquisition also boosts Steel Dynamics’ operating flexibility and will "provide numerous synergies with our existing operations, and we look forward to levering these opportunities in the future."
Steel Dynamics says Heartland’s 220 employees are a "strong cultural fit." The 800,000 square-foot Wabash County facilities include a pickle line, cold mill and galvanizing line and Steel Dynamics says it will "utilize the full capacity of the facility," broadening the plant’s previous focus on galvanized products. The deal, which still requires regulatory approvals, is expected to be complete before the start of the fourth quarter.
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