Steel Dynamics acquires stake in Texas company
FORT WAYNE, Ind. (Inside INdiana Business) — Fort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) has announced plans to acquire a minority interest in New Process Steel LP, a metal products manufacturer and supply chain management company in Houston. Financial terms of the deal are not being disclosed.
As a result of the deal, Steel Dynamics will own a 45% share in New Process Steel. The company employs 950 workers and is Steel Dynamics’ largest single flat roll steel customer, a relationship that Chief Executive Officer Mark Millett says dates back to his company’s founding.
“This minority equity interest enables us to grow our exposure to value-added manufacturing opportunities, while continuing to serve our other long-standing flat roll steel customer needs,” Millett said in a news release. “New Process Steel has a reputation for high-quality standards and strong customer relationships. With Richard Fant and the current New Process leadership team at the helm, we believe there will be numerous opportunities for value-added manufacturing growth.”
Fant, who currently serves as chief executive officer of New Process Steel, will continue to operate the company as the majority equity holder. New Process Steel also has a manufacturing facility in the DeKalb County city of Butler.
The acquisition remains subject to regulatory approvals and customary closing conditions.