Scrap-based steelmaker Steel Dynamics Inc. has agreed to pay more than $1 billion for OmniSource Corp., a ferrous and nonferrous scrap-processing chain. OmniSource lists 42 facilities in the Eastern U.S. and Canada, with a scrap-processing capacity of 6 million tons/year for ferrous metals and 900 million lb/year for nonferrous metals. Both SDI and OmniSource are based in Fort Wayne, IN. Keith Busse, SDI's chairman and CEO, stated: "This acquisition creates a significant platform for SDI's strategic expansion into the steel scrap and recycled metals sector, which is an important element of our overall growth plan. Aside from the fact that scrap is a critical resource for our steelmaking operations, and Omni has historically been one of our largest suppliers, this acquisition opens the door for our growth in a sector of increasing relevance on a global scale. OmniSource represents one of the premier organizations in the industry, and has demonstrated an ability to successfully grow its business." The takeover has been approved by directors of both companies. SDI will acquire all the outstanding stock of OmniSource, and OmniSource shareholders will receive 9.7 million shares of SDI stock plus $425 million in cash. OmniSource will operate as a wholly owned subsidiary of SDI, and will incorporate SDI's current scrap operations in Virginia and Tennessee, as will a planned scrap processing operation in Indianapolis. OmniSource president and CEO Danny Rifkin will join the SDI management team as a director and executive vice president of SDI's new recycled metals business unit and he will oversee the OmniSource subsidiary as president and chief operating officer.