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Allegheny Ludlum to Acquire J&L Specialty
02/17/2004 -
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Allegheny Ludlum
to Acquire J&L Specialty
Feb, 17, 2004 — Allegheny Ludlum Corp. and Arcelor have entered into an agreement for the sale of substantially all of the assets of J&L Specialty Steel, LLC to a subsidiary of Allegheny Ludlum.
"This transaction provides an opportunity to accelerate the return to profitability of our flat-rolled stainless steel business. "The economics of the transaction are attractive. The combination and integration of the J&L Specialty Steel operations with our Allegheny Ludlum operations should improve our overall competitive position and create opportunities for growth, cost savings and operating synergies. "In addition, this industry consolidation improves customer service by maintaining J&L's capacity in the U.S. stainless steel market." Pat
Hassey, President and CEO |
The transaction, which is targeted for May 3, 2004, is conditioned upon completion of due diligence by ATI, successful negotiation of new collective bargaining agreements at Allegheny Ludlum and J&L with the United Steelworkers of America, approval by ATI’s secured lenders, and customary regulatory approvals.
Joseph K. Kusic, President and CEO of J&L, said that "Allegheny Ludlum's leading position in flat-rolled stainless steel and diverse product lines make it particularly well suited to integrate and utilize the strengths of J&L to complement its current capabilities and products. Allegheny Ludlum's acquisition of J&L's assets is in the best long-term interest of J&L, its customers and its employees."
J&L Specialty Steel, LLC is a leading manufacturer
of flat rolled stainless steel products. The company is headquartered
in Coraopolis, Pa., with plants in Midland, Pa., and Louisville, Ohio.
J&L is a wholly-owned subsidiary of Arcelor, the world's largest producer
of steel.
With approximately 100,000 employees in over 60 countries, Arcelor
is the world's largest steel producer. In 2002, on a pro forma basis,
production was approximately 44 million tons of steel with a turnover
of 26.6 billion euros. Arcelor is a major player in all of its main markets:
automotive, construction, household appliances and packaging as well as
general industry.
Allegheny Ludlum is a world leader in the production
and marketing of sheet, plate and strip specialty materials including
stainless steel, nickel-based alloys, titanium and titanium-based alloys.
The company also produces grain-oriented silicon electrical steel products
and tool steel plate.
Allegheny Technologies Inc. is one of the largest and
most diversified specialty material producers in the world, with revenues
of approximately $1.9 billion in 2003. The Company has approximately 8,800
employees worldwide. Products include nickel-based and cobalt-based alloys
and superalloys, titanium and titanium alloys, specialty steels, super
stainless steel, exotic alloys, which include zirconium, hafnium and niobium,
tungsten materials, and highly engineered strip and Precision Rolled Strip(R)
products. Commodity specialty materials include stainless steel sheet
and plate, silicon and tool steels, and forgings and castings.
