Jun 4 2007
Mitsui & Co., Ltd. through its wholly owned subsidiary Mitsui & Co. (U.S.A.), Inc. ("Mitsui USA") today completed the previously announced acquisition of Steel Technologies Inc. ("Steel Technologies"). The all-cash transaction was valued at approximately $534 million, including retained debt of $137 million.
Louisville, KY-based Steel Technologies operates 24 facilities, including joint venture operations, throughout the United States, Canada and Mexico. It is a leading North American steel processor that leverages its broad geographic network of facilities to deliver processing capabilities, including slitting and blanking, and value-added services to customers in a variety of industries.
Steel Technologies will operate as a separate, wholly owned subsidiary with the current management team, led by Chief Executive Officer Bradford T. Ray, maintaining responsibility for the company's performance and growth strategies. Steel Technologies' management will work closely with Mitsui USA's Iron and Steel Products Division to capitalize on business synergies in order to expand the product and service offerings provided to a wide range of industries.
From a sourcing standpoint, the combined purchasing power of both Steel Technologies and Mitsui will provide the foundation to further strengthen and grow strategic initiatives and partnerships with the domestic mills. In addition, the combined purchasing expertise will provide the ability to strategically source both commodity as well as niche items to meet the needs of our customers.
"Steel Technologies becomes an important element in implementing our North American business strategy and enhancing our steel processing value chain," said Ichizo Kutsukake, Senior Vice President of Mitsui USA's Iron and Steel Products Division. "This highly regarded addition to Mitsui USA will enable us to efficiently meet our customers' ever-increasing demands and expectations, as well as provide capacity to pursue new opportunities."