May 2006

 

Acquisition of Roanoke Electric Steel Corporation complete

Fort Wayne, IN— Steel Dynamics, Inc. announced that it has completed its previously announced acquisition of Roanoke Electric Steel Corporation. The transaction closed on April 11, 2006, immediately following approval of the transaction by Roanoke stockholders.

Pursuant to the Merger Agreement, Roanoke stockholders received $9.75 in cash and 0.4 shares of SDI common stock for each share of Roanoke stock outstanding at the effective date of the merger. Based on 11,360,901 Roanoke shares outstanding prior to the close of the transaction, Steel Dynamics paid $111 million in cash, issued 4,544,360 shares of registered Steel Dynamics common stock and assumed $45 million in Roanoke debt. The cash portion of the purchase price was funded from the company’s current cash on hand. After giving effect to the issuance of shares related to this transaction, Steel Dynamics will have a total of 48,611,177 shares of common stock outstanding.

The combined companies will now operate five electric-furnace mini mills with annual production capacity of approximately five million tons, whose steel products include flat-rolled, merchant bar, engineered bar, and light structural steels as well as wide-flange beams and rail. In addition, the company will now operate five facilities that fabricate steel joists and decking used in non-residential construction and two scrap-metal processing facilities. Steel Dynamics now operates facilities in the states of Indiana, Virginia, West Virginia, South Carolina, Florida, Ohio, and Tennessee.

 


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