Hanwa Co. Ltd., Japan, has agreed to acquire membership interests in Associated Steel Group LLC, Oklahoma City, through a joint investment with Development Bank of Japan Inc., according to Hanwa. The company recently began to seek “proactive business investments that enable non-linear growth,” supported by a strengthened financial and risk management base.
In light of structural changes in demand in the domestic market, and to further accelerate expansion into the growth markets of the Americas and Europe, the company has positioned the full-scale adoption and promotion of an overseas M&A strategy. Through these initiatives, the company aims to achieve a future overseas revenue mix of 50 percent.
Associated Steel Group (ASG) is a steel structure manufacturing group centered on Alliance Steel Inc., based in Oklahoma, and ACI Building Systems LLC, based in Mississippi. The group provides pre-engineered metal building systems for non-residential buildings, primarily in the southern United States, in which steel framing components designed and fabricated in factories are assembled on site.
By making ASG a consolidated subsidiary, Hanwa will acquire a business foundation in the metal building sector in the Americas. Leveraging its strengths in the distribution of construction steel materials, value-added processing and delivering solutions in design and construction, Hanwa will use ASG as a starting point to maximize synergies by strengthening downstream operations and building and reinforcing a resilient supply chain that spans the entire value chain, extending upstream to North American steel manufacturers.
Hanwa plans to purchase a 50.1 percent share in ASG for $347 million.
