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Steel Dynamics completes acquisition of CSN Heartland flat roll operations

Staff Writer |
Steel Dynamics announced the completion of the acquisition of Heartland Steel Processing (formerly known as Companhia Siderurgica Nacional).

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Located in Terre Haute, Indiana, Heartland produces various types of higher-margin, flat roll steel by further processing hot roll coils into pickle and oil, cold roll, and galvanized products.

As previously announced, the purchase price for Heartland was $400 million in cash, inclusive of $60 million of normalized working capital, and subject to customary transaction purchase price adjustments.

The transaction was funded with available cash, with an expectation of near-term earnings and cash flow per share accretion.

The acquisition will expand Steel Dynamics' annual flat roll steel shipping capacity to 8.4 million tons and total steel shipping capability to 12.4 million tons.

The additional exposure to lighter-gauge and greater width flat roll steel offerings will broaden the Company's value-added product portfolio, enhancing Steel Dynamics position as a leading North American steel producer.

Heartland has the annual capability to produce 1.0 million tons of cold roll steel, with galvanizing capacity of 360,000 tons.

Heartland is comprised of a continuous pickle line, a cold mill, and a galvanizing line.

The equipment has been upgraded, well-maintained, and is in excellent operating condition.

Historically, Heartland has been operated at low utilization, primarily focusing on galvanized products.

Future plans are to utilize the full capacity of the facility, providing high quality cold roll, pickle and oil, and galvanized products.

The geographic proximity to Steel Dynamics' other flat roll operations and certain fabrication locations provides opportunities related to logistics and production efficiencies throughout the supply chain and customer network.

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