NEW YORK Horsehead Holding Corp. has acquired Mitsui Zinc Powders LLC, and will rename its new subsidiary Horsehead Zinc Powders LLC.
Horsehead is a longtime supplier of special-high-grade (SHG) zinc metal to Mitsui, which manufactures zinc powders for the alkaline battery business, according to a statement from Horsehead.
Mitsui is located at Horseheads Monaca, Pa., zinc smelter site. Horsehead said operations will continue to operate at Monaca "for the near term." Financial terms of the deal were not disclosed.
"This acquisition will also help facilitate the transition of our Monaca operations in 2013 and opens the possibility of relocating this business to our Mooresboro, N.C., site to realize operating efficiencies at some point in the future," said Horsehead president and chief executive officer Jim Hensler.
Pittsburgh-based Horsehead is set to close the Monaca smelter and migrate operations to a new site in Mooresboro in the second half of 2013.
Hensler added that the Mitsui acquisition "advances our strategy of expanding our presence in higher-value-added zinc markets."
Mitsui sales for 2011 totaled approximately $25 million. Horsehead expects the acquisition to be accretive to cash flow in the first year, according to the statement.