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United States : INSTEEL INDUSTRIES announces the completion of its acquisition of ASW CORP. for US $36 million

August 20, 2014

Insteel Industries Inc. announced that its subsidiary, Insteel Wire Products Company completed the acquisition of all of the assets associated with the prestressed concrete strand business of American Spring Wire Corporation for US$36.0 million, which is subject to post closing adjustments.

The ASW Acquisition was pursuant to the announced Asset Purchase Agreement between Insteel and ASW.

ASW is North America's largest manufacturer of valve and commercial quality spring wire. ASW manufactures PC strand in Texas and Georgia. For the 12 months, ASW's sales of PC strand were US $67.8 million.

The terms of the purchase agreement, Insteel acquired, other assets, the accounts receivable and inventories related to ASW's PC strand business, the production equipment at ASW's facility in Texas and the production equipment and facility in Georgia. Insteel will lease the Houston facility from ASW.

The purchase price is subject to an adjustment to be determined based upon the working capital balance. The transaction was funded from cash on hand and borrowings on Insteel's US $100.0 million revolving credit facility.

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Source: TendersInfo (India)

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