Quanex Corp. signed a definitive purchase agreement with North Star Steel to purchase the assets of North Star's Monroe, Michigan based manufacturing facility in a cash transaction. The acquisition is subject to government approval. The company expects to close the deal on or about Nov. 1.
The Michigan mini-mill produces bar steel, primarily for the light vehicle and heavy duty truck market. The facility has an annual capacity of more than 500,000 tons.
The operation will become part of Quanex's Macsteel division and will be renamed MacSteel Monroe.
"The acquisition of the Monroe facility further supports Quanex's efforts to provide its vehicular customers with a broad range of high quality bar products for their specific safety critical applications," stated Raymond Jean, chairman and CEO of Quanex. "Monroe's production capabilities are an excellent complement to MACSTEEL's 1" to 6" size range. Its steel bar making operation along with a dedication to providing excellent customer service will fit in well with MACSTEEL's approach to its vehicular products market. We also see opportunities to take cost out of the value chain. This acquisition, which should be accretive to earnings in its first year, serves as an excellent example of the type of acquisition we'll make at Quanex as we profitably grow our two core businesses," said Jean.
Quanex is a manufacturer of engineered materials and components for the Vehicular Products and Building Products markets.Latest from Recycling Today
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