Acerinox buys 100% of American company Haynes International for $798 M

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Acerinox has informed the National Securities Market Commission (CNMV) that it has reached an agreement to acquire 100% of the American company, Haynes International, which specialises in high-performance alloys. Haynes market consensus expects company sales in 2024 of $649 million and EBITDA of $96 million.

The expected synergies amount to $71 million. The price amounts to $798 million (30% of Acerinox’s market capitalisation), equivalent to an enterprise value of $970 million. The EV/EBITDA24e ratio is 10.1x, 5.6x including synergies. This ratio contrasts with the 3.7x at which Acerinox is trading for 2024. It will pay $61 per share, which represents a premium of 8.7% from the closing price on February 2 and 22.3% from the volume-weighted average of the last 6 months.

It will be fully financed from Acerinox’s balance sheet, which will increase the net debt/EBITDA ratio in 24e to 1.5x, reducing it below 1.2x in 2025. The company’s dividend policy does not change. Acerinox expects the operation to be positive in EPS (+11%) from the first year, excluding synergies.

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The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.