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OmniSource acquisition moves SDI forward in backward integration.

Publication: Metal Center News
Publication Date: 01-OCT-07
Format: Online
Delivery: Immediate Online Access
Full Article Title: OmniSource acquisition moves SDI forward in backward integration.(METAL INDUSTRY NEWS)

Article Excerpt
Steelmaker Steel Dynamics Inc., Fort Wayne, Ind., has agreed to acquire nearby scrap processor OmniSource Corp. in a 50-50 stock and cash transaction valued at about $1.6 billion. The combination of SDI and OmniSource creates an enterprise with $6 billion in annual revenues, and should generate about $15 million in annual synergies.

Terms of the deal call for OmniSource shareholders to receive 9.7 million shares of Steel Dynamics stock and $425 million in cash. Steel Dynamics also will assume some of OmniSource's liabilities, including debt of about $210 million.

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