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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowSteel Dynamics Inc. announced yesterday that it has acquired privately held OmniSource Corp. for $1 billion in cash and Steel Dynamics stock.
Both companies are headquartered in Fort Wayne. OmniSource is one of the nation’s largest steel recyclers, and will operate as a subsidiary of Steel Dynamics.
OmniSource President and CEO Danny Rifkin will become Steel Dynamics’ executive vice president of a new recycled metals unit. He also will become a director.
Eliminating duplicate operations is expected to save Steel Dynamics $15 million a year.
The deal is expected to close in November.
The acquisition is the latest in a string of announcements issued by the Fort Wayne minimill company. In July, Steel Dynamics said it would spend $75 million to add a second casting operation to the structural steel and rail mill it operates in nearby Columbia City.
On Sept. 20 it said it would move ahead with a long-planned iron nugget project near Hoyt Lakes, Minn. The Mesabi Nugget plant will make an iron nugget for use by minimills in melting and recycling metal. Steel Dynamics will spend $85 million and hold an 81-percent equity stake in the joint venture with Kobe Steel of Japan.
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