Spanish stainless steel giant Acerinox, through its wholly-owned US subsidiary North American Stainless, is to acquire Haynes (HAYN) for $970M. Acerinox plans to invest $170M into the ~$600M US maker of specialty nickel-based alloys once the transaction closes, expected to be in Q3 of 2024.
The acquisition is the Madrid, Spain-headquartered company’s second foray into aerospace nickel mill product, having acquired European nickel mill VDM in 2020. Although Charles Edwards estimated Haynes was the fourth largest aerospace nickel mill, the combination with VDM creates a clear 4th place player. Acerinox’s acquisition and investment plans are likely motivated by the long leadtimes and constricted supply experienced by the aerospace industry since the pandemic. Demand for high grade nickel mill product is also expected to surge due to growth in batteries and electric vehicles on top of rising aircraft build rates.
