UNIVERSAL STAINLESS HEADLINESSteel Producers /
Universal Stainless
Universal Completes Purchase of Patriot Special Metals
Aug. 22, 2011 Universal Stainless & Alloy Products, Inc. has completed its purchase of the assets of Patriot Special Metals, a substantially completed Greenfield facility located in North Jackson, Ohio.
The acquired assets include a state-of-the-art radial forge that is currently being commissioned and a Vacuum Induction Melting (VIM) facility now under construction as well as two Vacuum Arc Remelt (VAR) furnaces scheduled for delivery in September. The facilities also include related equipment for heat treating and finishing long products that already have been installed and tested.
"This acquisition is a major, transformative step for Universal, which redefines our position in the specialty steel industry, significantly broadens our production capabilities and product range in higher value, higher margin products, and enables our entry into new global market niches,” commented Chairman, President and CEO Dennis Oates. “It also substantially advances our ability to serve our customers and provide them with unparalleled service through reduced cycle and lead times.
“The intent of this acquisition has been to fast-track our growth strategy and the value we build for shareholders. We have already begun to relentlessly pursue those objectives," added Oates.
The new facility is on-schedule to be fully operational in the first quarter of 2012. It is expected to be accretive at that time as the facility comes on stream.
Universal also reported that it has completed a related bank financing facility in connection with the closing of this acquisition comprising a $40-million term loan and a $75-million revolving credit facility. PNC Capital Markets LLC acted as Lead Arranger and Administrative Agent on the new credit facilities.
Headquartered in Bridgeville, Pa., Universal Stainless & Alloy Products manufactures and markets semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels that are used in a variety of industries. The company was established in 1994.