Mitsui & Company USA Inc. announced on February 28 that it has signed an agreement with Steel Technologies, a flat rolled steel processor headquartered in Louisville, KY.
Mitsui & Company USA will buy all the shares of Steel Technologies at $30 per share, which is approximately 63 percent higher than the stock's closing price of the day before the signing. The transaction, valued at $532 million including retained debts of $136 million, is expected to be finalized by the end of June, subject to approval by Steel Technologies' shareholders and to a regulatory review.
Steel Technologies will keep its name and still be based in Louisville, where it has about 150 employees at its headquarters.
With 20 years of partnership between Mitsui USA and Steel Technologies, they have been providing processed steel to Japanese automakers in the United States and other customers. Ichizo Kutsukake, senior vice president of Mitsui USA's Iron and Steel Products Division, said, “We intend to leverage Mitsui USA's investment and logistics capabilities to position Steel Technologies as an important element in implementing our North American business strategy and to enhance our upstream/downstream value chain. Steel Technologies will enable
us to efficiently meet our customers' ever-increasing demands and expectations.”
There are 25 steel processing plants operated by Steel Technologies in the United States,
Canada, and
Mexico, including six plants operated by Mi-Tech.
Steel Technologies, a flat-rolled steel processor, specializes in the
automotive, appliance, lawn and garden, agricultural, recreational and office equipment industries, among others.
Mitsui USA, the largest wholly-owned subsidiary of Mitsui & Company Ltd., is a diversified global
trading, investment and service enterprise. It specializes in iron and steel products, raw materials, infrastructure projects, machinery, information technology, chemicals, plastics, energy and consumer products, among others.