FOLLOW US

In a groundbreaking move set to redefine the landscape of high-performance alloy manufacturing, Acerinox, the stainless steel giant, has orchestrated a stunning acquisition, positioning itself to acquire Haynes International in a cash deal worth a staggering $798 million. Advised by legal powerhouses Paul Weiss Rifkind Wharton & Garrison LLP and Linklaters LLP, Acerinox is poised to revolutionize the industry.

Acerinox's Symphony of Expansion

Acerinox's subsidiary, North American Stainless, will conduct the acquisition, purchasing all outstanding shares of Haynes International at $61 per share in cash. This move, representing a premium of approximately 22% over Haynes' recent average share price, signals Acerinox's bold stride into the realm of high-performance alloys.

"Haynes' impressive business operations, coupled with their expertise in research and development, perfectly complement Acerinox's vision," remarked Bernardo Velázquez Herreros, CEO of Acerinox, underlining the strategic importance of this acquisition. The merger promises to fortify Acerinox's global leadership in high-performance alloys and unlock unprecedented opportunities in the burgeoning aerospace sector and the lucrative U.S. market.

Forge of Innovation: Acerinox and Haynes Join Forces

The Acerinox Group's expertise in stainless steel, coupled with Haynes International's prowess in advanced alloy technologies, paints a vivid picture of innovation and progress. This acquisition, valued at approximately $970 million in enterprise terms, solidifies Acerinox's dominance in the high-performance alloy segment and extends its footprint across the United States.

With a symphony of 14 new international locations joining Acerinox's ensemble, the merged entity is poised to amplify its operational capacities and expand its global reach. Moreover, the acquisition brings with it a treasure trove of 17 U.S. patents and published applications, augmenting the combined entity's research and development capabilities.

Acerinox to Acquire Haynes International : A New Chapter Unfolds

Haynes President and CEO, Michael L. Shore, heralded the merger as a testament to the future of the industry, highlighting a substantial $200 million investment earmarked for the combined company's U.S. operations. The majority of this investment will breathe new life into Kokomo, Indiana, where Haynes' headquarters reside.

"This transaction heralds a new era of value creation for our stakeholders," affirmed Robert H. Getz, Chairman of the Board of Haynes. "Acerinox's commitment to innovation, coupled with its vast resources, ensures a promising future for Haynes."

Closing the Deal

Pending regulatory approval and the fulfillment of customary closing conditions, including shareholder consent from Haynes, the acquisition is slated to conclude in the third quarter of the year. Upon completion, Haynes will transition into a wholly-owned subsidiary of Acerinox, bidding farewell to its Nasdaq listing.

Goldman Sachs Bank Europe SE steered Acerinox through the financial intricacies of this landmark deal, ensuring a smooth path to consolidation.

Legal Titans at Work

Behind the scenes, legal luminaries navigated the complexities of this historic acquisition. Paul Weiss Rifkind Wharton & Garrison LLP, with partners Kyle T. Seifried and Scott A. Barshay at the helm, provided counsel to Acerinox. While the full legal roster of Linklaters LLP remains undisclosed, their contributions undoubtedly played a pivotal role in shaping this deal.

Jefferies LLC, with guidance from Covington & Burling LLP, led the advisory efforts for Haynes, showcasing a synergy of legal expertise. The Kirkland & Ellis LLP team, led by corporate partners David Klein and Allie Wein, orchestrated Haynes' strategy, underscoring their commitment to securing the best outcome for their client amidst the intricacies of corporate law.

As the final notes of this symphony reverberate through the industry, Acerinox's acquisition of Haynes International stands as a testament to the power of strategic vision and collaborative synergy.