AK Steel Holding Corporation (NYSE:AKS) is to acquire privately-owned Precision Partners for US$360mln.
Ontario-based Precision is a manufacturing and engineering services company with eight plants in North America employing more than 1,000 people.
It is focused on the vehicles and infrastructure sectors.
“Precision Partners has a highly experienced leadership team and is an innovator in the markets they serve. This acquisition will combine the best of both companies, bringing AK Steel's innovation in materials and manufacturing together with Precision Partners' tooling and stamping knowledge and technology, to create a differentiated, innovative leader in the steel industry," claimed Roger Newport, the chief executive officer of AK Steel.
AK will pay for the acquisition through a mixture of debt and equity.
Ohio-based AK Steel is a producer of flat-rolled carbon, stainless and electrical steel products, and carbon and stainless tubular products, primarily for the automotive, infrastructure and manufacturing, electrical power generation and distribution markets.
AK’s shares were off a penny at US$6.57 in screen-based pre-market trading and closed Monday' session down 2.89% to $6.38.