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Steel Dynamics To Buy CSN Heartland Flat Roll Operations

Steel Dynamics Inc. (STLD) said that it agreed to acquire Companhia Siderurgica Nacional, LLC from CSN Steel, S.L.U., a wholly-owned subsidiary of Companhia Siderurgica Nacional or "CSN".

Located in Terre Haute, Indiana, Heartland produces various types of higher-margin, flat roll steel by further processing hot roll coils into pickle and oil, cold roll, and galvanized products. Steel Dynamics has agreed to purchase Heartland for $400 million in cash inclusive of $60 million of normalized working capital, subject to customary transaction purchase price adjustments.

Steel Dynamics believes the purchase price approximates current replacement value. The transaction is expected to be accretive to near-term earnings and cash flow per share.

The acquisition will expand Steel Dynamics' annual flat roll steel shipping capacity to 8.4 million tons and total shipping capability to 12.4 million tons.

The transaction has received all required corporate approvals from the respective parties. The transaction is only subject to customary conditions and receipt of regulatory approvals. Steel Dynamics expects to obtain all necessary regulatory approvals and complete the transaction before the end of the third quarter 2018. The purchase price will be paid in cash from available reserves, and is subject to customary working capital adjustments dependent upon the exact date of closing.

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