Friedman Industries Inc. · NASDAQ:FRD
Friedman Industries — Merger or Acquisition (May 2022)
14 slides from Friedman Industries's merger presentation, May 2, 2022
Slide 1: Creating a Leading North American Steel Service Center
Creating a Leading North American Steel Service Center May 2, 2022
Slide 2: Transaction overview
Transaction overview Friedman expands with major acquisition of Plateplus, Inc. operations • Friedman has acquired Plateplus’ East Chicago, IN and Granite City, IL facilities along with the inventory and customer relationships associated with these locations • Additionally, the agreement includes al
Slide 3: Geographically and technologically advantaged locations to drive customer growth
Geographically and technologically advantaged locations to drive customer growth • Meaningfully increases reach to the largest and fastest growing steel consuming markets in North America • Transforms Friedman with a new level of quality, reliability and best-in-market product capability to serve mo
Slide 4: Greater throughput volume expected to yield meaningful cost efficiencies
Greater throughput volume expected to yield meaningful cost efficiencies • Transaction to more than double annual volume of coil product segment • By combining the business of the Granite City and East Chicago facilities with existing Friedman locations and transferring volume from Plateplus’ Loudon
Slide 5: Clear path to a smooth integration
Clear path to a smooth integration • Friedman CEO Mike Taylor served as President of Cargill’s metals service center business from 2002 to 2014 when the acquired facilities were part of the Cargill metals service center portfolio • Numerous Plateplus leaders and key commercial personnel have joined
Slide 6: Partnership with Metal One positions Friedman for continued profitable growth at scale
Partnership with Metal One positions Friedman for continued profitable growth at scale • Metal One will own 7% of Friedman’s outstanding shares • Partnership provides meaningful opportunities to grow Friedman’s customer base and evaluate strategic growth opportunities • Metal One also provides addit
Slide 7: Introducing the new Friedman Industries
Introducing the new Friedman Industries One of the largest and most geographically diverse providers of high-quality sheet and plate in North America 6 strategic locations throughout North America’s top steel consuming markets 4 High quality temper pass mills 2 New stretcher levelers 2 Versatile ERW
Slide 8: Wide breadth of end markets served
Wide breadth of end markets served Whether temper passed or stretcher leveled, cut-to-length steel sheet and steel plate are used in a wide variety of applications by Friedman’s customers. Some examples include: Truck & Trailer Dry Bulk Freight & Barges Railcars Metal Buildings Heavy Equipment Const
Slide 9: Facility overview – East Chicago, Indiana
Facility overview – East Chicago, Indiana East Chicago temper mill strategically Overview located in the busiest steel market in • 5 acres with temper mill, finished goods warehouse and front office (total 154,194 sq. ft.) the U.S., providing increased reach to a broader geographic customer base • 1
Slide 10: Facility overview – Granite City, Illinois
Facility overview – Granite City, Illinois Granite City has two temper mills. Mill Overview #2 received an $8 mm upgrade in 2021 and will be the working mill at this • 333,000 sq. ft. facility going forward • Mill #1 is highly functional and is included • 360k tons of annual capacity with 24k tons o
Slide 11: Facility overview – Decatur, Alabama
Facility overview – Decatur, Alabama Friedman’s Decatur facility is located Overview adjacent to the campus of Nucor’s • Commissioned in 2008 Decatur steel mill • Rail, truck and barge access • Friedman’s newly installed stretcher leveler at Decatur has expanded Friedman’s processing • 47 acres with
Slide 12: Facility overview – Hickman, Arkansas
Facility overview – Hickman, Arkansas Friedman’s Hickman facility is located on the Overview campus of Nucor’s Blytheville steel mill • Commissioned in 1993 • Barge, truck and rail access • 26 acres with temper mill and cut to length line, finished goods warehouse and front office (total 67,000 sq.
Slide 13: Facility overview – Lone Star, Texas (Texas Tubular)
Facility overview – Lone Star, Texas (Texas Tubular) Texas Tubular is API certified to produce line Overview pipe and OCTG, and ASTM A500B and A53B structural pipe • Division founded in 1978 • The facility is adjacent to a fusion bond epoxy • Rail and truck access coating facility, which makes its l
Slide 14: Facility overview – Sinton, Texas
Facility overview – Sinton, Texas Friedman is in the final stage of constructing a Overview new facility on the campus of Steel Dynamics’ • Construction in progress; to be completed in 2022 new mill in Sinton • Port, truck and rail access • SDI’s mill has recently started; Friedman expects its facil
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