ArcelorMittal Announces Sale of Skyline Steel and Astralloy Business in The NAFTA Region to Nucor Corporation
18 Maggio 2012 - 3:00AM
Business Wire
Regulatory News:
ArcelorMittal announces today the sale of its steel foundation
distribution business in NAFTA, namely Skyline Steel and Astralloy
(“Skyline Steel”) to Nucor Corporation (“Nucor”) for a total
consideration of approximately $605 million on a debt free and cash
free basis (and subject to customary closing adjustments). The
transaction includes 100% of ArcelorMittal’s stake in Skyline
Steel’s operations in the NAFTA countries and the Caribbean.
ArcelorMittal will continue to own and operate the foundation
distribution businesses in the rest of the world.
Skyline Steel is a premier steel foundation distributor serving
the US, Canada, Mexico and the Caribbean and is a wholly-owned
subsidiary of ArcelorMittal. Skyline Steel distributes high quality
products to service the most challenging applications in the
construction and infrastructure industries, including marine
construction and bridge and highway construction. Skyline Steel
sources its products from a range of suppliers including Nucor
which is currently its largest supplier of steel. In 2011, Skyline
Steel generated revenues of $873 million.
The transaction is consistent with ArcelorMittal’s stated
strategy of selective divestment of non-core assets. Its impact on
the wider business will be limited since the Group has a strong
sales network in the NAFTA region for its core product range, which
will not be affected by this transaction.
As part of the transaction ArcelorMittal and Nucor will enter
into certain long-term commercial agreements whereby the parties
intend for ArcelorMittal to continue to provide Skyline Steel with
a full range of sheet piling and wear resistant products, which
ArcelorMittal is uniquely positioned to manufacture.
"Skyline Steel and Astralloy are strong specialist businesses
with excellent prospects in their markets. However, this decision
is very much in line with our strategy of focusing on core assets
and reducing net debt”, said Aditya Mittal, CFO and member of the
Group Management Board for ArcelorMittal. “As the largest supplier
to Skyline Steel, Nucor was a natural buyer for this subsidiary
business."
The transaction is subject to customary closing conditions,
including but not limited to competition clearance, and is expected
to be completed by the end of the second quarter of 2012.
About ArcelorMittal
ArcelorMittal is the world's leading steel and mining company,
with a presence in more than 60 countries.
ArcelorMittal is the leader in all major global carbon steel
markets, including automotive, construction, household appliances
and packaging, with leading R&D and technology. The Group also
has a world class mining business with a global portfolio of over
20 mines in operation and development, and is the world’s 4th
largest iron ore producer. With operations in over 22 countries
spanning four continents, the Company covers all of the key
industrial markets, from emerging to mature, and has outstanding
distribution networks.
Through its core values of sustainability, quality and
leadership, ArcelorMittal commits to operating in a responsible way
with respect to the health, safety and well-being of its employees,
contractors and the communities in which it operates. It is also
committed to the sustainable management of the environment. It
takes a leading role in the industry's efforts to develop
breakthrough steelmaking technologies and is actively researching
and developing steel-based technologies and solutions that
contribute to combat climate change. ArcelorMittal is a member of
the FTSE4Good Index and the Dow Jones Sustainability World
Index.
In 2011, ArcelorMittal had revenues of $94.0 billion and crude
steel production of 91.9 million tonnes, representing approximately
6 per cent of world steel output. The Group's mining operations
produced 54 million tonnes of iron ore and 8 million tonnes of
metallurgical coal.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish
stock exchanges of Barcelona, Bilbao, Madrid and Valencia
(MTS).
For more information about ArcelorMittal visit:
www.arcelormittal.com
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