Japan’s Hanwa Co. has completed the acquisition of US-based Associated Steel Group, LLC (ASG), making the company a consolidated subsidiary.
Hanwa acquired a 50.1pct stake in ASG through its North American unit, Hanwa American Corp. (HAMCO), while Development Bank of Japan acquired the remaining 49.9pct through a special-purpose company. The transaction was completed on August 31 after receiving US antitrust clearance.
ASG supplies engineered steel building solutions through its operating companies, Alliance Steel and ACI Building Systems. The group employs nearly 600 people and operates facilities in Oklahoma City, Oklahoma, and Batesville, Mississippi.
Hanwa’s total investment is estimated at USD 226 mln, including funds provided to repay existing borrowings of ASG and its subsidiaries. The final amount may change following closing adjustments.
Hanwa Co. is a Tokyo-based Japanese trading company established in 1947. The company trades and distributes steel products, metals, food products, energy-related materials and machinery internationally. Steel is Hanwa’s largest business segment, accounting for around half of its sales.