Insteel Industries’ wholly-owned subsidiary, Insteel Wire Products Company (together referred to as Insteel) has completed the acquisition of substantially all of the assets associated with the pre-stressed concrete strand (PC strand) business of American Spring Wire Corporation (ASW) for a purchase price of approximately USD 36M.
ASW is North America’s largest manufacturer of valve and commercial quality spring wire. ASW manufactures PC strand at facilities located in Texas and Georgia. For the twelve months ended 30 June 2014, ASW’s sales of PC strand were USD 67.8M.
Under the terms of the purchase agreement, Insteel acquired, among other assets, the accounts receivable and inventories related to ASW’s PC strand business, the production equipment at ASW’s facility in Houston, Texas, and the production equipment and facility in Newnan, Georgia. Insteel will lease the Houston facility from ASW. The purchase price is subject to an adjustment to be determined based upon the closing working capital balance. The transaction was funded from cash on hand and borrowings on Insteel’s USD 100M revolving credit facility.
