wiredinUSA September 2014

Prestressed acquisition

in Newnan, Georgia. Insteel will lease the Houston facility from ASW. The purchase

Insteel Wire Products Company, a wholly owned subsidiary of Insteel Industries Inc, will buy two plants from American Spring Wire Corp (ASW), one in Newnan and a second in Houston, for $36 million. ASW manufactures prestressed concrete strand at its Texas and Georgia facilities. For the 12 months ended 30 th June 2014, ASW's sales of the strand were $67.8 million. Underthetermsofthepurchaseagreement, Insteel will acquire theaccounts receivable and inventories related to ASW's PC strand business, the production equipment at ASW's facility in Houston, Texas, and the production equipment and facility

price is subject to an adjustment, yet to be determined, based upon the closing working capital balance. “The ASW acquisition significantly enhances the footprint of Insteel's PC strand business in our largest and highest growth markets,” said HO Woltz III, Insteel president and chief executive officer. “We also believe that the integration of these operations with our existing PC strand facilities in Tennessee and Florida will provide considerable synergy potential through higher productivity levels and improved operating costs.”

wiredInUSA - September 2014

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