BY Fraser Tennant
In a deal set to increase its presence in the high-growth US market and aerospace sector, Spanish stainless steel company Acerinox is to acquire fabricated metal products manufacturer Haynes International, Inc for $970m.
Under the terms of the definitive agreement, Acerinox will acquire all the outstanding shares of Haynes for $61 per share in cash, which represents a premium of approximately 22 percent to Haynes’s six-month volume-weighted average share price for the period ending 2 February 2024.
In addition, Acerinox plans to invest $200m into its US operations as part of the transaction, including $170m into Haynes’ operations. Upon completion of the transaction, Haynes’s shares will no longer be traded on the Nasdaq, and Haynes will become a wholly owned subsidiary of Acerinox.
“Haynes has impressive and complementary business operations, research and development capabilities and an experienced team,” said Bernardo Velázquez Herreros, chief executive of Acerinox. “Their addition strengthens our global leadership in high-performance alloys and creates meaningful opportunities in the high-growth aerospace segment and the attractive US market.”
Headquartered in Kokomo, Indiana, Haynes is a leading developer, manufacturer and distributor of high-performance alloys for use in high-temperature and corrosion applications. Since 2000, its technical programmes have yielded nine new proprietary alloys.
“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 of Haynes. “By joining with Acerinox, we will be able to continue to grow and enhance our operations.”
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the third quarter of 2024, subject to receipt of regulatory approval and the satisfaction of customary closing conditions, including approval by Haynes shareholders.
Mr Hereros concluded: “I look forward to welcoming Haynes as part of our team and working together to enhance our combined operating footprint in North America.”