Quanex Corp., an industry-leading manufacturer of engineered materials and components for the Vehicular Products and Building Products markets, has announced that it signed a definitive purchase agreement with North Star Steel, a subsidiary of Cargill, Inc., to purchase the assets of North Star's Monroe, MI mini-mill in a cash transaction. The acquisition is subject to government approval. The Company expects to close the deal on or about November 1, 2003. Terms were not disclosed.
North Star Steel-Monroe, located in Monroe, MI, produces special bar quality and engineered steel bars primarily serving the light vehicle and heavy-duty truck markets. The facility, with revenues of approximately $175 million, can produce over 500,000 tons of bars in diameters from 0.5625 to 3.25 in. The facility employs approximately 380 employees and is both ISO9002 and QS9000 certified. 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 in. 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 (www.quanex.com)produces engineered materials and components for the Vehicular Products and Building Products markets. North Star Steel Co. (www.northstarsteel.com) is a subsidiary of Cargill, Inc., an international marketer, processor and distributor of agricultural, food, financial and industrial products and services.