Haynes International to be acquired by Acerinox subsidiary

Haynes International Inc, a developer, manufacturer and marketer of technologically advanced high-performance alloys, said on Monday that it had entered into a definitive agreement to be purchased by North American Stainless, a wholly owned subsidiary of Acerinox, in an all-cash deal.

Haynes International’s estimated enterprise value stands at nearly $970 million, or a multiple of 12.3x fiscal 2023 EBITDA.

Under the terms of the deal, Haynes shareholders will receive $61.00 per share in cash, or a premium of about 22% to Haynes’ 6-month volume-weighted average share price for the period ending February 2nd.

“We are excited to announce this combination and are confident that this is the right step to ensure the long-term success of Haynes, while maximizing value for our stockholders,” Michael Shor, President and Chief Executive Officer of Haynes International Inc, said in a press release.

“By joining with Acerinox, we will be able to continue to grow and enhance our operations, especially with the additional $200 million investment into the combined company’s U.S. operations, including $170 million into our operations with the vast majority invested in Kokomo, Indiana. We look forward to our people and our local communities realizing the benefits of this transaction,” the CEO added.

As part of the agreement, Acerinox will invest additional $200 million in its US operations, including $170 million in Haynes International’s operations.

Stock Performance

The shares of Haynes International Inc (HAYN) closed 0.63% ($0.35) higher at $56.11 on Nasdaq on Friday, as they extended the gain from the previous market session.

The company’s total market cap now stands at $717.254 million.

The shares of Haynes International Inc went up 24.86% in 2023, compared with a 43.42% gain for the benchmark index, NASDAQ Composite (IXIC).

The company’s shares have retreated 1.65% so far this year.

Analyst stock price forecast and recommendation

According to TipRanks, at least one Wall Street analyst offering 12-month price targets for Haynes International Inc’s stock had rated the latter as “Hold”.