North American Stainless Buys Haynes International For $970M

North American Stainless agreed to buy Haynes International HAYN, a manufacturer and marketer of high-performance alloys, in an all-cash deal valued at about $970 million.

The purchase price represents a 12.3x fiscal 2023 EBITDA multiple. North American Stainless will acquire all of Haynes’ outstanding shares for $61.00 per share in cash, reflecting a 22% premium to Haynes’ six-month volume-weighted average share price. 

Haynes CEO Michael L. Shor said the sale is “the right step to ensure the long-term success of Haynes while maximizing value for our stockholders.”

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Acerinox chair Carlos Ortega Arias-Paz praised the Haynes team for building a “high-performance alloys business that will now be supported by Acerinox's global operating and financial strength.”

The transaction also expands Acerinox’s presence in the U.S. market, creating new opportunities in the aerospace sector.

Additionally, Acerinox has committed to invest an additional $200 million into its U.S. operations, including $170 million into Haynes’ operations. The four-year investment, mainly in Haynes’s Kokomo operations in Indiana, should create an integrated HPA and stainless steel platform.

“This acquisition is aligned with Acerinox's key strategic priority of enhancing our focus on value-added products with an emphasis on excellence and sustainability, building on our successful acquisition of VDM Metals in 2020,” said Arias-Paz said.

Acerinox bought German-based alloy firm VDM Metals for 532 million euros ($587.6 million) in 2020.

This latest deal with North American Stainless is expected to be immediately accretive to Acerinox's earnings per share in its first year of ownership, even before the estimated annual synergies of $71 million.

Both boards of directors have unanimously approved the acquisition, which should close in the third-quarter of 2024, subject to regulatory approval.

The acquisition by Acerinox, a Spanish steel conglomerate, continues the trend of foreign companies acquiring U.S. metal manufacturers. A $14.1 billion Nippon Steel's NISTF bid for U.S. Steel X, the largest such ongoing deal, is pending regulatory scrutiny, with a focus on its impact on national security and supply chain reliability.

Haynes just announced the latest earnings results, reporting record revenues, despite a Kokomo plant outage.

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