On November 19, Mount Airy, North Carolina, US-based Insteel Industries, a manufacturer of steel wire reinforcing products for concrete construction applications, announced that its wholly-owned subsidiary Insteel Wire Products Company has purchased certain of the assets of Houston, Texas-based Ivy Steel & Wire Inc. for a price of approximately $51.1 million, subject to certain post-closing adjustments.
Ivy is a division of welded wire reinforcement and wire products provider Oldcastle, Inc., which is the US holding company of Ireland-based building materials group CRH plc. The company operates five facilities, which are located in Arizona, Florida, Missouri, Pennsylvania and Texas. In 2009, Ivy reported net sales of $104.3 million.
According to an Insteel statement, under the terms of the purchase agreement, Insteel acquired, among other assets, certain of Ivy's inventories and its production facilities located in Hazleton, Pennsylvania; Jacksonville, Florida; Kingman, Arizona; and St. Joseph, Missouri, in addition to the production equipment located at its Houston, Texas facility for $37.6 million of cash and a $13.5 million secured subordinated note payable to Ivy over five years. The cash portion of the purchase price was funded from cash and cash equivalents on hand.
"The addition of Ivy's facilities to our existing geographic footprint enhances Insteel's competitiveness in the Northeast, Midwest and Florida markets, in addition to providing a platform to serve west coast markets more effectively," commented H.O. Woltz III, Insteel president and chief executive officer.