Universal Stainless & Alloy Products signed an agreement to purchase the assets of Patriot Special Metals of North Jackson, Ohio. Patriot Special Metals is a substantially completed greenfield facility that includes a state-of-the-art radial forge in the initial start-up phase and a vacuum induction melting (VIM) facility that is scheduled to be completed by Universal Stainless for production in the first quarter of 2012. The plant also includes two vacuum arc remelt (VAR) furnaces, scheduled for a fourth quarter 2011 start-up, and related equipment for heat treating and finishing long products. The transaction, which included a purchase price of $104.5 million and an additional $25 million for the completion of equipment installation, is expected to close by the end of July.
The addition of the radial forge will expand the Universal Stainless’ products to include large and long forged squares, rounds, bars and custom shapes. The business acquired due to the capabilities of the forge will increase the utilization of the company’s recently upgraded meltshop at its Bridgeville, Pa., plant. Adding VIM-VAR capability will enable the Universal Stainless to enter selected global high-nickel alloy and superalloy markets. In other news, the company plans to install an electroslag remelt furnace at the North Jackson facility.