Steel Dynamics Acquiring The Techs

Steel Dynamics, Inc. has entered into a definitive agreement to acquire The Techs, a Pennsylvania-based flat-rolled-steel galvanizing company. The company includes three hot-dip galvanizing facilities in the Pittsburgh area. Steel Dynamics will pay $360 million for the company. The acquisition is expected to close on or about July 2, 2007.

The Techs business operations consist of three facilities, GalvTech, MetalTech, and NexTech, each specializing in the galvanizing of specific types of flat-rolled steels. Last year the privately held company shipped 958,000 tons of galvanized steel and generated revenues of $811 million. The Techs specializes in non-automotive applications, serving a variety of customers in the HVAC, commercial construction, and consumer goods markets. About 85 percent of its sales are to customers in the eastern U.S. and the Midwest.

"The Techs represents an excellent opportunity for Steel Dynamics to expand its participation in the value-added steel coating business," said Mark Millett, president and COO for Flat Rolled Steels and Ferrous Resources. "Its management and employees have done a fine job building an outstanding company by focusing on quality and service, resulting in a very loyal non-automotive customer base.

"This additional business complements our three existing galvanizing lines at Butler and Jeffersonville, Indiana, which utilize steel sheet produced at our Butler mill. Like our existing operations, these plants process both hot- rolled and cold-rolled steel in a range of gauges. This acquisition will approximately double SDI's hot-dip galvanizing capacity," Millett said.

The Techs' three facilities have a combined annual galvanizing capacity of about one million tons. Together, the three facilities employ approximately 225 people.