Quanex Corp. (NX)

[frenchee]

Quanex to Spin Off, Sell
Unit in $1.7 Billion Deal
By KATHY SHWIFF
November 20, 2007

Quanex Corp. said it will split itself in two, spinning off its building-products unit to shareholders and selling its automotive-parts business to Brazilian steelmaker Gerdau SA for about $1.57 billion.

The planned sale values Quanex's vehicle business at $39.20 a share. The Houston industrial company's stock rose $12.01, or 33%, to $48.75 in 4 p.m. New York Stock Exchange composite trading, a price that reflects the part of the company being spun off and procceds from the sale to Gerdau.

Quanex said in May that it was considering a possible sale, spinoff or joint venture of its building-products business, which includes the manufacturing of aluminum siding, windows and doors. The building-products segment's sales are estimated at $964 million for the fiscal year ended Oct. 31. Quanex's total sales for the fiscal year are estimated at $2.06 billion.

Quanex, through its steel arm MacSteel, produces special bar-quality steels, operating at three minimills. In July, Gerdau acquired U.S. steelmaker Chaparral Steel Co. for $4.2 billion. Three months later, Gerdau acquired construction-products maker Enco Materials Inc. for an undisclosed amount.