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Acerinox to Acquire Haynes International

Acerinox, the Leader in U.S. Stainless Steel, Strengthens Its Global Leadership Position in High Performance Alloys (“HPA”) Acerinox to Support Haynes with Additional $200 million Investment Over the Next Four Years in Newly Combined North American Business Significantly Increases Acerinox’s Presence in the High-Growth U.S. Market and Aerospace Sector

Madrid, 5 February 2024. Acerinox, a leading global company in the manufacturing and distribution of stainless steel and high-performance alloys, today announced that it has entered into a definitive agreement under which Acerinox’s wholly owned U.S. subsidiary – North American Stainless (“NAS”) – will acquire Haynes International (“Haynes”), a U.S. leading developer, manufacturer, and marketer of technologically advanced high-performance alloys, in an all-cash transaction. Under the terms of the agreement, Acerinox will acquire all the outstanding shares of Haynes for $61.00 per share in cash, which represents a fully diluted equity value of $798 million, and a premium of approximately 22% to Haynes’s six-month volume-weighted average share price for the period ending February 2, 2024. The all-cash transaction values Haynes at an enterprise value of approximately $970 million. The transaction has been unanimously approved by the Boards of Directors of Haynes and Acerinox.

“Haynes has impressive and complementary business operations, R&D capabilities, and an experienced team. Their addition to Acerinox strengthens our global leadership in high-performance alloys and creates meaningful opportunities in the high-growth aerospace segment and the attractive U.S. market,” Bernardo Velázquez Herreros, Chief Executive Officer of Acerinox, said. “I look forward to welcoming Haynes as part of our team and working together to enhance our combined operating footprint in North America.”

“This acquisition is aligned with Acerinox’s key strategic priority of enhancing our focus on value-added products with an emphasis on excellence and sustainability, building on our successful acquisition of VDM Metals in 2020,” Carlos Ortega Arias-Paz, Chairman of the Board of Acerinox, said. “The Haynes team has built a leading high-performance alloys business that will now be supported by Acerinox’s global operating and financial strength.”

“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,” said Michael L. Shor, President and Chief Executive Officer of Haynes. “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.”

“This transaction provides a highly attractive value for our Company and our stockholders, and is a direct result of Haynes’ continued innovation and business accomplishments under the leadership of Michael Shor, his team and our dedicated workforce,” said Robert H. Getz, Chairman of the Board of Haynes. “Acerinox is a great partner for the future of Haynes with access to additional capital, resources and expertise to continue to build on our existing momentum.”