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wiredInUSA - September 2014
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Insteel Wire Products Company, a wholly
owned subsidiary of Insteel Industries Inc,
will buy two plants from American Spring
Wire Corp (ASW), one in Newnan and a
second in Houston, for $36 million.
ASW manufactures prestressed concrete
strand at its Texas and Georgia facilities.
For the 12 months ended 30
th
June 2014,
ASW's sales of the strand were $67.8 million.
Underthetermsofthepurchaseagreement,
Insteel will acquire theaccounts receivable
and inventories related to ASW's PC strand
business, the production equipment
at ASW's facility in Houston, Texas, and
the production equipment and facility
in Newnan, Georgia.
Insteel will lease the
Houston facility from
ASW. The purchase
price is subject to an adjustment, yet to
be determined, based upon the closing
working capital balance.
“The
ASW
acquisition
significantly
enhances the footprint of Insteel's PC
strand business in our largest and highest
growth markets,” said HO Woltz III, Insteel
president and chief executive officer.
“We also believe that the integration
of these operations with our existing PC
strand facilities in Tennessee and Florida
will provide considerable synergy potential
through higher productivity levels and
improved operating costs.”
Prestressed acquisition