Mar 1 2007
Mitsui & Co. (U.S.A.), Inc. (“Mitsui USA”) and Steel Technologies Inc. announced the signing of a definitive agreement pursuant to which Mitsui USA will acquire all outstanding shares of Steel Technologies for $30 per share. This per share offer represents a 63% premium over the previous day’s closing price. The all-cash transaction, valued at approximately $532 million including retained debt of $136 million, is subject to shareholder approval and regulatory review, and is expected to close by the end of June.
Steel Technologies, with headquarters in Louisville, KY, operates 25 steel processing facilities, including its joint venture operations, throughout the United States, Canada and Mexico. It is a leading North American steel processor that leverages its broad geographic network of facilities to deliver processing capabilities and value-added services to customers in a variety of industries. Upon completion of the merger, Steel Technologies will operate as a separate, wholly owned subsidiary with the current management team maintaining responsibility for the company’s performance and growth strategies.
“As a result of our 20-year strategic partnership, Mitsui USA and Steel Technologies know each other’s strengths quite well,” said Ichizo Kutsukake, Senior Vice President of Mitsui USA’s Iron and Steel Products Division. “We intend to leverage Mitsui USA’s investment and logistics capabilities to position Steel Technologies as an important element in implementing our North American business strategy and to enhance our upstream/downstream value chain. Steel Technologies will enable us to efficiently meet our customers’ ever-increasing demands and expectations.”
Mitsui USA plans to finance this transaction through its existing capital resources.
“We are also delighted that the current management team, which has been so successful in growing the business and creating value for customers, will remain in place to build on our long-term relationship,” Mr. Kutsukake added. “Mitsui USA is committed to supporting the Steel Technologies team in its ongoing initiative to broaden and deepen the company’s penetration in existing markets and in developing opportunities in new markets.”