SDI To Purchase Severstal Columbus for $1.625 Billion

Steel Dynamics has announced the purchase of the Severstal Columbus steel mill for $1.625 billion in cash. According to the mill the purchase price will be financed with available cash and debt. The Columbus mill expands their hot rolled steel production by 3.4 million tons and broadens their product portfolio as well as geographical reach into the Southern U.S. markets and Mexico. The Columbus plant is a non-union facility. Here is a copy of the SDI press release:

FORT WAYNE, Ind., July 21, 2014 /PRNewswire/ — Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced that it has entered into a definitive agreement to acquire 100% of Severstal Columbus, LLC (“Columbus”) from OAO Severstal.  Located in northeast Mississippi, Columbus is one of the newest and most technologically advanced mini-mills in North America.  Steel Dynamics will purchase Columbus for $1.625 billion in cash, subject to customary transaction purchase price adjustments.