Steel Dynamics/OmniSource acquires Recycle South

Steel Dynamics, Inc. announced that OmniSource Corporation, a wholly-owned subsidiary of Steel Dynamics, completed the acquisition of Recycle South, LLC, on June 10, 2008. Recycle South, one of the largest regional scrap metal recycling companies in the nation, is headquartered in Spartanburg, South Carolina.

OmniSource (which already owned 25 percent of Recycle South) acquired the remaining 75 percent equity interest for a purchase price of approximately $515 million, comprised of 3,938,000 shares of Steel Dynamics common stock, valued at approximately $140 million; cash of $232 million; and the assumption of certain liabilities, including net debt of approximately $143 million. This results in a total enterprise value of about $640 million.

Recycle South employs 700 people in 22 locations.

The company will operate as a division of OmniSource Corporation, and will be called OmniSource Southeast. As part of OmniSource, all current management will remain in place and will continue to focus on ferrous and nonferrous scrap processing, brokerage, and the industrial scrap management needs of its customers.