Haynes International IncHAYN has inked a landmark deal to be taken over by North American Stainless, a wholly owned unit of Acerinox SAACRXF, for a staggering enterprise value of approximately $970 million.
The all-cash transaction price equates to a multiple of 12.3x fiscal 2023 EBITDA.
Under the arrangement, North American Stainless is set to acquire all outstanding shares of Haynes at $61.00 per share in cash, representing an impressive premium of almost 9% over the closing price on Friday and roughly 22% over its six-month volume-weighted average share price for the period ending February 2, 2024.
Michael L. Shor, President and CEO of Haynes, expressed, “By joining forces with Acerinox, we are poised to sustain growth and fortify our operations, particularly with the additional $200 million investment in the combined company’s U.S. operations, including $170 million allocated to our operations, with the vast majority focused on Kokomo, Indiana. We anticipate that our employees and local communities will reap the rewards of this deal.”
The deal, unanimously sanctioned by the board of both firms, is anticipated to culminate in the third quarter of 2024, contingent upon the fulfillment of customary closing conditions.
Following the finalization, Haynes will cease trading on the Nasdaq stock exchange.
Price Performance: Prior to Monday’s trading, HAYN shares saw a 3.37% uptick, reaching $58.00 premarket.
