Universal to pay $130M for Patriot assets

Jun 15, 2011 | 05:37 PM | Thorsten Schier

Tags  Universal Stainless, Patriot Special Metals, North Jackson, high nickel alloy, superalloy, forged squares, rounds, bars radial forge

NEW YORK — Universal Stainless & Alloy Products Inc. has signed an agreement to purchase the North Jackson, Ohio-based assets of Patriot Special Metals Inc. for $104.5 million plus an additional $25 million in equipment installation costs, Universal said this week.

"The facility itself is literally a greenfield facility. There are no customer orders on the books that we are assuming at this time," Universal chairman, president and chief executive officer Dennis Oates said Wednesday.

The transaction price reflects the amount Patriot Forge has spent on the facility to date "plus a small premium," Oates said.

Patriot Special Metals Inc., is a subsidiary of Brantford, Ontario-based Patriot Forge Co.

Patriot’s North Jackson facility is equipped with a radial forge in the commissioning phase and an 18-ton vacuum induction melting (VIM) furnace, which is scheduled to begin operation in the first quarter of 2012, Oates said.

"The forge itself is there; it’s up, it’s operational." Oates said. "They’ve processed about 200 pieces." ....