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May 26, 2022

BGL Announces the Sale of ROCA ACERO S.A. de C.V.

Brown Gibbons Lang & Company (BGL) is pleased to announce 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). As previously disclosed by Steel Dynamics, the company will acquire the equity interest of ROCA, to be funded with available cash. The transaction is subject to customary closing conditions and receipt of required regulatory approvals. 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.

ROCA is headquartered in Monterrey, Mexico, with primary operations comprising four 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. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.

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.