Insteel Wire Products Company, a wholly owned subsidiary of Insteel Industries, purchased certain assets of Ivy Steel & Wire Inc. for USD 51.1 million. The terms are subject to particular post-closing adjustments. North Carolina based Insteel Industries manufactures steel wire reinforcing products for concrete construction applications. A division of welded wire reinforcement and wire products provider Oldcastle, Inc., Ivy Steel operates five facilities in Arizona, Florida, Missouri, Pennsylvania and Texas. The company reported net sales of USD 104.3 million in 2009. As per the agreement, Insteel will acquire, among other assets, Ivy’s production facilities in Hazleton, Pennsylvania; Jacksonville, Florida; Kingman, Arizona; and St. Joseph, Missouri. The company will also attain the production equipment from Ivy’s Houston, Texas facility for USD 37.6 million in cash and USD 13.5 million in a secured subordinated note payable to Ivy over five years. Ivy’s facilities will serve to enhance Insteel’s presence in the Northeast, Midwest and Florida markets and also provide a platform to better serve west coast markets.
