BGL Completes Sale of ROCA ACERO S.A. de C.V.

Rhea-AI Summary

Steel Dynamics (STLD) has completed the acquisition of ROCA ACERO S.A. de C.V., a scrap metals recycling business, following regulatory approvals. This acquisition enhances Steel Dynamics' position in the Southwest U.S. and Mexico, strengthening its raw material procurement and operational capabilities. ROCA operates five processing facilities with an annual shipping capacity of approximately 575,000 gross tons, further augmenting Steel Dynamics' total scrap processing capacity to over 2.5 million gross tons. The transaction aligns with Steel Dynamics' growth strategy in the metals processing sector.

Positive

• Acquisition of ROCA adds strategic value to Steel Dynamics' growth in the Southwest U.S. and Mexico.
• Enhances raw material procurement for Steel Dynamics' electric-arc-furnace steel operations.
• Total estimated annual scrap processing capacity exceeds 2.5 million gross tons.

Negative

• None.

CHICAGO, Oct. 11, 2022 /PRNewswire/ -- Brown Gibbons Lang & Company (BGL) is pleased to announce the completion of the sale of ROCA ACERO S.A. de C.V. (ROCA), a ferrous and nonferrous scrap metals recycling business, to Steel Dynamics, Inc. (NASDAQ/GS: STLD). The agreement was originally announced in May, and the transaction received the necessary regulatory approvals and officially closed earlier this month. As previously disclosed, Steel Dynamics acquired the equity interest of ROCA. BGL's Metals & Metals Processing investment banking team, together with its Mexican Global M&A partner, RIóN Mergers & Acquisitions, served as financial advisor to ROCA in the transaction.

BGL together with its Mexican Global M&A partner, RIóN M&A, served as financial advisor to ROCA in the transaction.

Headquartered in Monterrey, Mexico, ROCA has primary operations comprising of five scrap processing facilities, strategically positioned near high-volume industrial scrap sources located throughout central and northern Mexico. These combined facilities currently ship approximately 575,000 gross tons of scrap annually and have an estimated annual processing capability of approximately 850,000 gross tons.

Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck.

This transaction will enable Steel Dynamics to further solidify its Southwest U.S. and Mexico growth strategy, which includes strengthening the company's raw material procurement strategy in the region and providing an even more meaningful competitive advantage to its U.S. electric-arc-furnace steel operations. The acquisition gives Steel Dynamics a total estimated annual ferrous and nonferrous scrap processing capacity of over 2.5 million gross tons.

BGL's Metals & Metals Processing team, led by Vince Pappalardo, has deep sector knowledge and extensive transaction experience within major subsectors of the broader metals industry, representing both ferrous and nonferrous metals businesses. Coverage includes service centers, mills and foundries, manufacturing, and recycling.

About Brown Gibbons Lang & Company

Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, Los Angeles, and New York, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, LLC, an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC. For more information, please visit www.bglco.com. 

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SOURCE Brown Gibbons Lang & Company

FAQ

What is the significance of Steel Dynamics acquiring ROCA ACERO S.A. de C.V.?

The acquisition enhances Steel Dynamics' operational capabilities and raw material procurement strategy in the Southwest U.S. and Mexico.

When was the acquisition of ROCA ACERO S.A. de C.V. by Steel Dynamics completed?

The acquisition was completed on October 11, 2022.

What is the stock symbol for Steel Dynamics?

The stock symbol for Steel Dynamics is STLD.

How many tons of scrap does ROCA ship annually?

ROCA ships approximately 575,000 gross tons of scrap annually.

What is the total estimated scrap processing capacity after the acquisition?

Steel Dynamics' total estimated scrap processing capacity exceeds 2.5 million gross tons after the acquisition.