AK Steel Holding Corporation (NYSE:AKS) To Raise Carbon Steel Product Prices

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AK Steel Holding Corporation (NYSE:AKS) To Raise Carbon Steel Product Prices

AK Steel Holding Corporation (NYSE:AKS) has announced that it plans to raise the base prices of all carbon steel products by roughly $30 per ton.

The company made the announcement yesterday revealing that the prevailing carbon flat-rolled steel base prices in the spot market will be increased by a minimum of $30 per ton. The change is expected to take place immediately following the new orders. It is also expected to cause a significant impact in the market because SK Steel is an industry leader when it comes to the production of flat-rolled carbon steel. This includes electrical steel and stainless steel products.

AK Steel acquires Precision Partners for $360 million

The announcement about the increase in carbon steel products comes just a few days after AK Steel announced that it struck a $360 million acquisition deal to buy Precision Partners. The steel producer acquired the U.S private equity firm from Milestone Partners which acquired the business in 2013 through a carve-out deal.

Milestones revealed that during the four years that it has owned the private equity firm, annual EBITDA and revenue growth rates were registered at 32 percent and 24 percent respectively. The company also had nice things to say about precision partners as they announced the sale and Precision Partners also returned the favor.

“Milestone Partners saw value in our differentiated operating model and approach to the market. They shared our vision around capacity expansion and helped to refine our strategic direction, and they placed confidence in our management team, aligning interests and creating a great outcome for our team as well as their investors,” stated Precision Partners CEO Des Griffiths.

John Shoemaker, a managing partner at Milestone Partners also pointed out that the investment in Precision Partners is a good example of Milestone’s investment approach. He also added that they have been teaming up with the management to identify investment opportunities as well as the deployment of resources so as to maximize returns. AK Steel CEO Roger Newport stated that his company was pleased with the already successful platforms that exist at Precision Partners.

AK Steel stock closed the latest trading session on Wednesday at $5.43.