OmniSource to acquire Recycle South
Steel Dynamics, Inc. announced that OmniSource Corporation,
a wholly-owned subsidiary of Steel Dynamics, and Recycle South, LLC have
executed a definitive agreement whereby OmniSource will acquire the remaining
equity interests in Recycle South, one of the largest regional scrap
metal recycling companies in the nation.
Recycle South was formed in August 2007 by the merger of Carolinas Recycling
Group and Atlantic Scrap and Processing. The company is headquartered
in Spartanburg, South Carolina.
The agreement has been unanimously approved by the boards of directors
of both companies. OmniSource, which already owns 25 percent of Recycle
South, will acquire the remaining equity interests valued at approximately
Current Recycle South equity owners will receive 3,938,000 shares of
Steel Dynamics common stock, valued at approximately $138 million and
$232 million in cash. The aggregate transaction value includes the assumption
of certain liabilities, including net debt, which are expected to total
approximately $135 million at closing. Completion of the transaction
is subject only to regulatory approval, and is expected to close before
the end of the second quarter of 2008.