Haynes International Inc HAYN penned a deal to be acquired by North American Stainless, a wholly owned subsidiary of Acerinox SA ACRXF, for an enterprise value of about $970 million.
The all-cash transaction price represents a multiple of 12.3x fiscal 2023 EBITDA.
As per the terms, North American Stainless will acquire all Haynes’ outstanding shares for $61.00 per share in cash, reflecting a premium of nearly 9% to Friday’s closing price and about 22% to its’ six-month volume-weighted average share price for the period ending February 2, 2024.
Michael L. Shor, President and Chief Executive Officer of Haynes, said, “By joining with Acerinox, we will be able to continue to grow and enhance our operations, especially with the additional $200 million investment into the combined company’s U.S. operations, including $170 million into our operations with the vast majority invested in Kokomo, Indiana. We look forward to our people and our local communities realizing the benefits of this transaction.”
The deal, unanimously approved by the board of directors of both companies, is expected to close in the third quarter of 2024, subject to the satisfaction of customary closing conditions.
Post completion, Haynes will cease trading on the Nasdaq stock exchange.
Price Action: HAYN shares traded higher by 3.37% at $58.00 premarket Monday.
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