BlueScope today announced the US$145 million sale of Metl-Span, its North American
insulated metal panels business, to NCI Group, Inc. (“NCI”), a NYSE listed company majority
owned by private equity firm Clayton, Dubilier & Rice, LLC (“CD&R”).
The estimated net proceeds of the sale, $117 million after purchase price adjustments, tax
and fees, is expected to be received during the fourth quarter of FY2012 subject to receipt of necessary regulatory approvals and finalization of debt financing by NCI.
BlueScope has owned Metl-Span since February 2008 when it acquired the IMSA Steel Corp businesses – Steelscape, ASC Profiles, VP (Varco Pruden) Buildings and Metl-Span.
BlueScope has been actively seeking potential asset sales that could realize around $100-150 million. The divestment of Metl-Span achieves this target and the net proceeds will be used to pay down debt.
BlueScope’s North American subsidiary, Steelscape, will continue to supply product to Metl-Span and Metl-Span will continue to supply product to BlueScope Buildings North America.
The acquisition is subject to a number of closing conditions, including the expiration or termination of any applicable waiting period under the Hart Scott Rodino Act.
Mark Dobbins, president of NCI’s Components Division, commented, “As a past customer of Metl-Span, we have tremendous respect for the organization and the people. Their decades of experience with regards to manufacturing processes, customer service and technical development for insulated metal panel systems will be an invaluable addition to our Components Division. Metl-Span’s existing five locations will accelerate our expansion plans and allow us to better service our customers with additional products and opportunities to compete in the nonresidential construction market.”
