Coweta steel wire plant being acquired by Insteel
Insteel Industries Inc. has announced the acquisition of one of their primary competitors with facilities in Coweta County.
Insteel Wire Products Co. officials Monday said the company plans to spend $36 million to buy two plants from American Spring Wire Corp., including the local facility on Herring Road in Shenandoah Industrial Park and the second in Houston, Texas.
American Spring Wire (ASW) is North America’s largest manufacturer of valve and commercial quality spring wire. The deal is expected to close by Aug. 15.
Under the terms of the purchase agreement, Insteel will acquire, among other assets, the accounts receivable and inventories related to ASW's PC strand business, the production equipment at ASW's facility in Houston, and the production equipment and facility in Coweta.
Insteel will lease the Houston facility from ASW. The purchase price is subject to an adjustment to be determined based upon the closing working capital balance. The transaction will be funded from cash on hand and borrowings on Insteel's $100 million revolving credit facility.
Insteel's products are sold primarily to manufacturers of concrete products that are used in nonresidential construction. Headquartered in Mount Airy, North Carolina, Insteel operates nine manufacturing facilities located in the United States.
Insteel is the nation's largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets PC strand and welded wire reinforcement, including engineered structural mesh ("ESM"), concrete pipe reinforcement and standard welded wire reinforcement.