Acerinox’s wholly owned U.S. subsidiary, North American Stainless (NAS), has entered into a definitive agreement to acquire Haynes International. The acquisition, valued at approximately $970 million, includes an all-cash transaction where Acerinox will acquire all outstanding shares of Haynes for $61.00 per share, representing a premium of approximately 22% to Haynes’s six-month volume-weighted average share price (Acerinox) (Recycling Today).
Key Points of the Acquisition:
- Strategic Expansion: The acquisition significantly strengthens Acerinox’s position in the high-performance alloys market, particularly in the U.S. and aerospace sectors (Acerinox) (Recycling Today).
- Investment Plans: Acerinox plans to invest $200 million over the next four years in the combined North American business, with a substantial portion allocated to Haynes’s operations in Kokomo, Indiana (Recycling Today).
- Synergies and Growth: The transaction is expected to generate annual synergies of $71 million and is projected to be accretive to Acerinox’s earnings per share in its first year of ownership (Recycling Today).
This acquisition follows Acerinox’s previous successful acquisition of VDM Metals in 2020, further expanding their capabilities and market reach in high-performance alloys (Acerinox). The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in the third quarter of 2024, pending regulatory approval and other customary closing conditions (Recycling Today).
The acquisition is promising to address supply chain constraints in the US for niche specialty alloys as the influx of cash from Acerinox could support additional capacity.
To learn more, book a consultation online at Book Online | Europa (the-europa-initiative.org).
