Steel Dynamics to acquire remaining 55% stake in New Process Steel

FORT WAYNE, Ind. - Steel Dynamics, Inc. (NASDAQ:STLD), a $18.5 billion market cap steel producer with annual revenues of $17.1 billion, announced Tuesday it has entered into a definitive agreement to acquire the remaining 55% equity interest in New Process Steel, L.P., a metals solutions and distribution supply-chain management company headquartered in Houston, Texas.

New Process Steel, which is currently Steel Dynamics’ largest flat roll steel customer, operates six manufacturing facilities - four in the U.S. and two in Mexico. Two of its U.S. locations are situated at Steel Dynamics’ Butler and Columbus Flat Roll Steel divisions.

"We have enjoyed a strong customer relationship with New Process since our founding," said Mark D. Millett, Chairman and Chief Executive Officer of Steel Dynamics. "This acquisition expands our exposure to value-added manufacturing opportunities."

Richard Fant, New Process Steel Chief Executive Officer, who has led the company for over 25 years, expressed support for the transaction, noting it presents "a great opportunity for New Process to grow our value-added metals solutions and supply-chain strategy."

New Process Steel employs approximately 1,275 individuals and was originally purchased in 1952 by Gene Fant, the father of the current CEO.

The transaction remains subject to customary closing conditions and regulatory approvals. Financial terms of the acquisition were not disclosed in the press release statement.

Steel Dynamics is one of North America’s largest domestic steel producers and metal recyclers, with facilities throughout the United States and Mexico. The company operates using a circular manufacturing model with recycled scrap as the primary input for its steel production. The company has demonstrated strong shareholder commitment, having raised its dividend for 12 consecutive years. For deeper insights into Steel Dynamics’ financial health and growth prospects, including exclusive ProTips and comprehensive analysis, visit InvestingPro.

In other recent news, Steel Dynamics reported its financial results for the second quarter of 2025, which did not meet analysts’ expectations. The company posted an earnings per share of $2.01, falling short of the forecasted $2.26, while revenue was reported at $4.6 billion, below the anticipated $4.73 billion. Despite this, Steel Dynamics announced a cash dividend of $0.50 per share for the third quarter of 2025, payable to shareholders of record as of September 30, 2025.

Additionally, Wells Fargo initiated coverage on Steel Dynamics with an Overweight rating and set a price target of $143.00. The investment bank highlighted the conclusion of a multi-year, approximately $5 billion investment cycle as a significant factor in its positive outlook. These developments provide a mixed view of Steel Dynamics’ recent financial and market activities.

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