BGL Completes Sale of ROCA ACERO S.A. de C.V.

Brown Gibbons Lang & Company (BGL) is pleased to announce the completion of the sale of ROCA ACERO S.A. de C.V. (ROCA), a ferrous and nonferrous scrap metals recycling business, to Steel Dynamics, Inc. (NASDAQ/GS: STLD). The agreement was originally announced in May, and the transaction received the necessary regulatory approvals and officially closed earlier this month. As previously disclosed, Steel Dynamics acquired the equity interest of ROCA. BGL’s Metals & Advanced Metals Manufacturing investment banking team, together with its Mexican Global M&A partner, RIóN Mergers & Acquisitions, served as financial advisor to ROCA in the transaction.

Headquartered in Monterrey, Mexico, ROCA has primary operations comprising of five scrap processing facilities, strategically positioned near high-volume industrial scrap sources located throughout central and northern Mexico. These combined facilities currently ship approximately 575,000 gross tons of scrap annually and have an estimated annual processing capability of approximately 850,000 gross tons.

Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck.

This transaction will enable Steel Dynamics to further solidify its Southwest U.S. and Mexico growth strategy, which includes strengthening the company’s raw material procurement strategy in the region and providing an even more meaningful competitive advantage to its U.S. electric-arc-furnace steel operations. The acquisition gives Steel Dynamics a total estimated annual ferrous and nonferrous scrap processing capacity of over 2.5 million gross tons.

BGL’s Metals & Advanced Metals Manufacturing team, led by Vincent Pappalardo, has deep sector knowledge and extensive transaction experience within major subsectors of the broader metals industry, representing both ferrous and nonferrous metals businesses. Coverage includes service centers, mills and foundries, manufacturing, and recycling.