North American Stainless acquires Haynes International

Spain-based Acerinox S.A., owner of recycled-content metals producer North American Stainless (NAS), has entered into a definitive agreement under which NAS will acquire Kokomo, Indiana-based specialty alloys producer Haynes International.

According to Acerinox, NAS will acquire the alloys maker for securities currently carrying a value of about $798 million, with an additional premium boosting the transaction amount to about $970 million.

Kentucky-based NAS uses predominantly scrap metal to make its 800,00 tons per year (tpy) of stainless steel. NAS is in the midst of an expansion project to bring its annual capacity up to 1 million tpy.

The specialty alloys market involves smaller volumes, with Haynes International reporting in its most recent financial quarter shipments of about 2,350 tons of metal. The firm lists the aerospace, chemical processing and land-based gas turbine sectors as the predominant end markets for its alloys.

Within a Securities and Exchange Commission 10-K form filed by Haynes International, it reports its melt materials consist of virgin raw material, purchased scrap and internally produced scrap.

In its transaction announcement, Acerinox says NAS anticipates making considerable investments in the newly acquired Haynes assets, saying it will support Haynes with $200 million in capital investments over the next four years in the newly combined North American business.

The pertinent combined assets include Acerinox facilities operating under the VDM Metals name, which the Spanish firm acquired in 2020.

“This acquisition is aligned with Acerinox’s key strategic priority of enhancing our focus on value-added products with an emphasis on excellence and sustainability, building on our successful acquisition of VDM Metals in 2020,” Acerinox Chairman Carlos Ortega Arias-Paz says. “The Haynes team has built a leading high-performance alloys business that will now be supported by Acerinox’s global operating and financial strength.”

VDM, like Haynes, makes specialty alloys, with its portfolio including corrosion-resistant, heat-resistant and high-temperature nickel alloys, cobalt and zirconium alloys and specialty stainless steels. In the United States, VDM operates two specialty alloy plants, with one in Nevada and the other in New Jersey.

“Haynes has impressive and complementary business operations, R&D capabilities and an experienced team,” Acerinox CEO Bernardo Velázquez Herreros says. “[Its] addition to Acerinox strengthens our global leadership in high-performance alloys and creates meaningful opportunities in the high-growth aerospace segment and the attractive U.S. market.”

“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," Haynes President and CEO Michael L. Shor adds. "We look forward to our people and our local communities realizing the benefits of this transaction.”