Here's a press article about the Acerinox and Haynes International acquisition, combining the best elements of provided examples and addressing potential shortcomings :
Acerinox Strengthens Global Leadership in High-Performance Alloys with Acquisition of Haynes International
Madrid, February 5, 2024 – Acerinox, a leading global stainless steel and high-performance alloys (HPA) manufacturer, today announced a definitive agreement for its wholly-owned U.S. subsidiary, North American Stainless (NAS), to acquire Haynes International (Haynes), a leading U.S.-based developer and manufacturer of technologically advanced HPAs. This all-cash transaction values Haynes at an enterprise value of approximately $970 million.
Key Highlights
- Global Leadership Expansion: The acquisition solidifies Acerinox's position as a global leader in the high-performance alloy segment.
- Increased U.S. Market Presence: Expands Acerinox's footprint in the lucrative U.S. market and creates new growth opportunities in the high-demand aerospace sector.
- Significant Investment: Acerinox is committed to investing an additional $200 million over the next four years into the combined North American business, with $170 million of that investment earmarked for Haynes's operations, primarily focused on their Kokomo, Indiana facility.
- Synergies and Value Creation: Estimated $71 million in annual synergies are expected, along with the creation of an integrated HPA and stainless steel platform in the U.S.
- Accelerated Growth: The combination offers a platform to fast-track growth in the high-performance alloy and specialty stainless steel markets in North America.
- Innovation and Customer Focus: Haynes's strong R&D capabilities, patent portfolio, and customer-centric approach will be amplified under Acerinox ownership.
- Strong ESG Commitments: Both Haynes and Acerinox have robust ESG credentials, making this a strong alignment for sustainable growth.
Executive Quotes
- Bernardo Velázquez Herreros, CEO of Acerinox: "Haynes is a highly complementary business with impressive operations, R&D capabilities, and an experienced team. This acquisition aligns with our strategic priorities and creates significant opportunities for Acerinox in both the high-growth aerospace segment and the dynamic U.S. market."
- Michael L. Shor, President and CEO of Haynes International: "We are thrilled to join forces with Acerinox. This combination will provide the resources and support to fuel our continued growth and innovation, ensuring a bright future for Haynes, our employees, and the communities we serve."
Financial Details
The transaction is expected to be immediately accretive to Acerinox's earnings per share in the first year of ownership, even before realizing the full potential of synergies. Pro-forma debt for Acerinox is estimated to reach 1.5x NFD/EBITDA in 2024, with a return to 1.2x in 2025.
Closing Conditions and Advisors
The transaction, unanimously approved by the Boards of Directors of both companies, is subject to regulatory approvals and customary closing conditions. It is expected to close in the third quarter of 2024. Goldman Sachs Bank Europe SE serves as the exclusive financial advisor to Acerinox, with legal counsel provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters. Haynes is advised financially by Jefferies LLC and legally by Kirkland & Ellis LLP.
About Acerinox
Acerinox Group is a world leader in stainless steel and high-performance alloy manufacturing, with a melting shop capacity of 3.5 million tonnes. Find out more at www.acerinox.com