Steel Dynamics Closes Acquisition Of Severstal Columbus

(RTTNews) - Steel Dynamics Inc (STLD) said Tuesday it has completed the acquisition of Severstal Columbus LLC, a new and technologically advanced mini-mill in North America.

As previously announced, the purchase price for Columbus was $1.625 billion in cash, with customary transaction purchase price adjustments, and has been funded with about $350 million of available cash, new senior unsecured notes in the amount of $1.2 billion, and borrowings on the company's revolving credit facility.

The acquisition of Columbus significantly expands and diversifies the company's steel operating base, increasing Steel Dynamics' annual steel shipping capacity to 11.0 million tons, a 40 percent increase, the company said.

For the twelve months ended June 30, 2014, pro forma revenue was $9.7 billion and pro forma Adjusted EBITDA was $965 million, with Columbus contributing $2.2 billion and $254 million, respectively. The additional exposure to the high-growth oil country tubular goods and automotive markets complements Steel Dynamics' product offerings.

Additionally, Columbus is advantageously located in Mississippi to serve the high-growth markets in the Southern U.S. and Mexico, providing both geographic diversification and growth opportunities for Steel Dynamics, the company said.