Haynes (HAYN) to be Acquired by Acerinox's Unit for $970 Million
Haynes International, Inc. HAYN, a prominent player in high-performance alloys, announced its acquisition by North American Stainless, a full-owned subsidiary of Acerinox. The acquisition, valued at approximately $970 million in an all-cash transaction, marks a strategic move by both entities to strengthen their positions for long-term success.
Under the definitive agreement, North American Stainless will purchase all outstanding shares of Haynes at $61 per share in cash, representing a premium of nearly 22% over Haynes' six-month volume-weighted average share price leading up to Feb 2, 2024. Acerinox's commitment to inject an additional $200 million into its U.S. operations, including a substantial $170 million into Haynes' operations, underscores its confidence in the future growth prospects of the combined entity.
Headquartered in Madrid, Spain, Acerinox is a leading manufacturer of stainless steel and high-performance alloys. Its subsidiary, North American Stainless, stands as the largest fully integrated stainless-steel company in the United States.
Haynes International, Inc. Price and Consensus
Haynes International, Inc. price-consensus-chart | Haynes International, Inc. Quote
The acquisition of Haynes offers significant benefits for stakeholders. Enhanced manufacturing capacity and product differentiation will improve customer responsiveness, fostering stronger relationships and business growth. The merger integrates Haynes' heritage while leveraging North American Stainless's resources, promising continued success in navigating market dynamics.
Michael L. Shor, president and CEO of Haynes, expressed optimism about the acquisition, affirming its alignment with the company's growth trajectory. Robert H. Getz, chairman of the board of Haynes, echoed this sentiment, highlighting Acerinox as an ideal partner for Haynes' future endeavors.
The transaction, unanimously approved by the boards of both companies, is slated for completion in the third quarter of 2024, subject to customary closing conditions and regulatory approvals. Upon completion, Haynes shares will cease trading on the Nasdaq stock exchange.
Shares of Haynes have gained 12.7% in the past year compared with a 2.1% rise of the industry.
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Zacks Rank & Key Picks
Haynes currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Cameco Corporation CCJ and Carpenter Technology Corporation CRS, both sporting a Zacks Rank #1 (Strong Buy), and Cleveland-Cliffs Inc. CLF, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cameco has a projected earnings growth rate of 188% for the current year. The Zacks Consensus Estimate for CCJ’s current-year earnings has been revised upward by 12.5% in the past 60 days. The stock is up around 68.5% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.97, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 28.1% in the past year.
The consensus estimate for CLF’s current fiscal year earnings is pegged at $2.27, indicating a year-over-year rise of 112%. The Zacks Consensus Estimate for CLF’s current-year earnings has been revised upward by 4.6% in the past 60 days. CLF beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 24.7%.
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