November 24, 2010 (FinancialWire) (http://www.financialwire.net/) — Insteel Industries, Inc. (NASDAQ: IIIN) said that its wholly-owned subsidiary, Insteel Wire Products Co. has purchased certain of the assets of Ivy Steel & Wire, Inc. for around $51.1 million. Ivy, a division of Oldcastle, Inc, the U.S. holding company of CRH PLC (NYSE: CRH), is a producer of welded wire reinforcement and wire products for concrete construction applications.

The firm operates five facilities, which are located in Arizona, Florida, Missouri, Pennsylvania and Texas. In 2009, Ivy reported net sales of $104.3 million

Under the terms of the purchase agreement, Insteel acquired, among other assets, certain of Ivy's inventories and its production facilities located in Hazleton, Pennsylvania; Jacksonville, Florida; Kingman, Arizona; and St. Joseph, Missouri in addition to the production equipment located at its Houston, Texas facility for $37.6 million of cash and a $13.5 million secured subordinated note payable to Ivy over five years.

Ivy retains, among other assets, accounts receivable and the assets associated with its Pilot Steel operations located in Pompano Beach, Florida.

According to Insteel, the cash portion of the purchase price was funded from cash and cash equivalents on hand.  

North Carolina-based Insteel is a manufacturer of steel wire reinforcing products for concrete construction applications. The firm operates six manufacturing facilities located in the United States.

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