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Acquisition
12 Months Ended
Dec. 31, 2015
Acquisitions  
Acquisitions

 

Note 2. Acquisitions

Consolidated Systems, Inc. (CSi)

        On September 14, 2015, the company purchased from CSi certain of its steel deck facilities (including associated assets) and net working capital of approximately $30.0 million, for a purchase price of $45.0 million in cash. Operating results of these facilities have been reflected in the company's financial statements under the steel fabrication operations since the September 14, 2015, purchase date. The purchased assets include two deck facilities located in Memphis, Tennessee, and Phoenix, Arizona. Producing both standard and premium specialty deck profiles, the new locations will allow for enhanced geographic reach into the southwestern and western markets, and further diversify New Millennium Building Systems' product offerings.

Severstal Columbus, LLC (Columbus Flat Roll Division)

        The company completed its acquisition of 100% of Columbus Flat Roll Division on September 16, 2014, for a purchase price of $1.625 billion, with additional working capital adjustments of $44.4 million. The acquisition was funded through the issuance of $1.2 billion in Senior Notes, borrowings under the company's senior secured credit facility, and available cash. The company purchased Columbus Flat Roll Division to significantly expand and diversify its steel operating base with the addition of 3.4 million tons of hot roll steel production capacity. The product offerings are diversified with respect to width, gauge, and strength when compared to the capabilities of our Butler Flat Roll Division. Located in northeast Mississippi, Columbus Flat Roll Division is one of the newest and most technologically advanced sheet steel electric arc furnace mills in North America. Additionally, Columbus Flat Roll Division is advantageously located to serve the growing markets in the southern U.S. and Mexico, providing the company with geographic diversification and growth opportunities.

        Unaudited Pro forma Information.    Columbus Flat Roll Division's operating results have been reflected in the company's financial statements since the effective date of the acquisition, September 16, 2014, in steel operations. The following unaudited pro forma information is presented below for comparison purposes as if the Columbus Flat Roll Division acquisition was completed as of January 1, 2013, (in thousands):

                                                                                                                                                                                    

 

 

Years Ended December 31,

 

 

 

2014

 

2013

 

Net Sales

 

$

10,355,774 

 

$

9,193,344 

 

Net Income attributable to Steel Dynamics, Inc. 

 

 

264,779 

 

 

155,357 

 

        The pro forma results reflect the pre-acquisition operations of Columbus Flat Roll Division for the years ended December 31, 2014, and 2013. The information presented is for information purposes only and is not necessarily indicative of the actual results that would have occurred had the acquisition been consummated at January 1, 2013, nor are they necessarily indicative of future operating results of the combined companies under the ownership and management of the company.