Steel Dynamics, Inc. has entered into a definitive agreement to acquire a majority of the equity interest of United Steel Supply, LLC. United Steel Supply is headquartered in Austin, Texas and is a leading distributor of painted Galvalume flat roll steel used for roofing and siding applications. Steel Dynamics has agreed to purchase 75 percent of the equity interests of United Steel Supply for $134 million, comprised of cash consideration of $92 million and the assumption of $42 million in apportioned debt. The purchase price assumes total net working capital of $59 million, which is subject to customary post-closing adjustments. Additionally, Steel Dynamics has an option to purchase the remaining 25 percent equity interest of United Steel Supply in the future.
"United Steel Supply provides an exciting opportunity to expand our painted Galvalume value chain, by affording us with a better opportunity to provide our high-quality flat roll steel directly to this important market segment," said Mark D. Millett, president and CEO. "United Steel Supply has a reputation for best-in-class service, short supply lead-times and strong customer relationships. We believe this partnership will provide a strong cultural fit with Steel Dynamics. We are eager to welcome the United Steel Supply employees and customers, and we look forward to our mutual growth and success."