Haynes International, Inc., Kokomo, Ind., a leading developer, manufacturer and marketer of technologically advanced high-performance alloys, announced it entered into a definitive agreement to be acquired by North American Stainless, a wholly owned subsidiary of Acerinox, Spain, in an all-cash transaction valuing the Company at an enterprise value of approximately $970 million and representing a multiple of 12.3x fiscal 2023 EBITDA.
Under the terms of the agreement, North American Stainless will acquire all the outstanding shares of Haynes for $61.00 per share in cash, which represents a premium of approximately 22% to Haynes’ six-month volume-weighted average share price for the period ending February 2, 2024.
As part of this transaction, Acerinox has committed to investing an additional $200 million into its U.S. operations, including $170 million into Haynes’ operations. This investment will support the continued business growth in both flat and round products for a global market. Also, it will best position Haynes to continue to innovate, increase manufacturing capacity and offer more highly differentiated products, applications and services, with faster lead-times to meet the dynamic needs of its customers.
Headquartered in Madrid, Acerinox is a global leader in manufacturing stainless-steel and high-performance alloys and its subsidiary, North American Stainless, is the largest fully integrated stainless-steel company in the U.S.
The transaction combines Haynes’ strong foundation and leadership position in high-performance alloys established over the past 112 years with the largest fully integrated U.S. stainless-steel company. It validates the strength of the Haynes business and best positions the company to achieve its growth targets while providing access to Acerinox’s healthy balance sheet, deep expertise and valuable relationships.
“We are excited to announce this combination and are confident that this is the right step to ensure the long-term success of Haynes, while maximizing value for our stockholders,” said Michael L. Shor, president and chief executive officer of Haynes. “By joining with Acerinox, we will be able to continue to grow and enhance our operations, especially with the additional $200 million investment into the combined company’s U.S. operations, including $170 million into our operations with the vast majority invested in Kokomo, Indiana. We look forward to our people and our local communities realizing the benefits of this transaction.”
The transaction, which has been unanimously approved by the board of directors of both companies, is expected to close in the third calendar quarter of 2024, subject to satisfaction of customary closing conditions, including receipt of regulatory approval and approval by Haynes stockholders. Upon completion of the transaction, Haynes shares will cease trading on the Nasdaq stock exchange.
For more information:
Acerinox
Haynes International, Inc.
