Indiana-based Haynes International to be acquired for $970M

(provided photo)

Kokomo-based Haynes International Inc. will soon be under new ownership. The manufacturer announced Monday that it has entered into an agreement to be acquired by North American Stainless, a stainless steel producer headquartered in Ghent, Kentucky, in a deal valued at $970 million.

North American Stainless is a subsidiary of Spain-based Acerinox, which said it planned to invest $170 million into Haynes’ operations.

Haynes International develops, manufactures and markets advanced high-performance alloys for the aerospace, industrial gas turbine, and chemical processing markets.

President and CEO Michael Shor said in a news release that Haynes leadership believes the deal is the right step to ensure the company’s long-term success, while maximizing value for stockholders.

“By joining with Acerinox, we will be able to continue to grow and enhance our operations, especially with the additional $200 million investment into the combined company’s U.S. operations, including $170 million into our operations with the vast majority invested in Kokomo, Indiana,” Shor said. “We look forward to our people and our local communities realizing the benefits of this transaction.”

Per the terms of the agreement, North American Stainless will acquire all outstanding shares of Haynes for $61 per share in cash.

The acquisition has been unanimously approved by the boards of directors for each company, and still requires regulatory approval, as well as approval from Haynes stockholders.

The deal is expected to close in the third quarter. Upon closing, Haynes will cease trading on the Nasdaq Stock Exchange.

Founded by Elwood Haynes in Kokomo as Haynes Stellite Works in 1912, Haynes International was the 34th largest public company in Indiana with $490 million in revenue in 2022, according to IBJ research. Revenue rose to $590 million in fiscal 2023.

The company, which went public in 2007, has approximately 1,200 employees.

The announcement of the acquisition was made just hours before Haynes International released its fiscal first quarter earnings. The company reported a profit of $7.7 million, essentially flat compared with the same period the previous year. Quarterly revenue rose 11% on a year-over-year basis, to $147.4 million. The quarterly profit and revenue figures fell short of analyst expections.

Haynes International’s stock was up more than 6%, to $59.54 per share, as of 11 a.m. Monday.