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AK Steel to Purchase Precision Partners Holding Company

WEST CHESTER, OH--(Marketwired - Jul 3, 2017) - AK Steel ( NYSE : AKS ) announced today that it has signed an agreement to acquire Precision Partners Holding Company ("Precision Partners"), a leading North American automotive market company that provides engineering, tooling, die design and hot and cold stamped steel parts, for $360 million in cash. Precision Partners is headquartered in Ontario, and employs more than 1,000 employees, including about 300 engineers and skilled tool makers, across eight plants in Ontario, Alabama and Kentucky.

Summary of Key Benefits:

  • Advances AK Steel's core focus on the high-growth automotive lightweighting space and its prominent position in advanced high strength steels.
  • Further strengthens close collaboration with AK Steel's automotive market customers.
  • Leverages AK Steel's research and innovation in materials and metals-forming and Precision Partners' technology and advanced capabilities in tooling and stamping.
  • Precision Partners has a proven, experienced leadership team with a track record of delivering strong business results and growth.

Precision Partners specializes in the design and engineering of tooling and die making, and the stamping of complex, hard-to-manufacture automotive components, with a broad portfolio of highly engineered solutions.

"The acquisition of Precision Partners underscores AK Steel's commitment to expand our portfolio of high-value products and processes," said Roger Newport, Chief Executive Officer of AK Steel. "Precision Partners has a highly experienced leadership team and is an innovator in the markets they serve. This acquisition will combine the best of both companies, bringing AK Steel's innovation in materials and manufacturing together with Precision Partners' tooling and stamping knowledge and technology, to create a differentiated, innovative leader in the steel industry."

AK Steel intends to finance the acquisition with a combination of debt and equity securities and remains committed to prudently managing its balance sheet.

The transaction is subject to customary closing and regulatory approvals in the U.S. and Canada. Subject to the conclusion of the regulatory review, the closing is...