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ArcelorMittal Announces Sale of Sparrows Point
08/02/2007 - ArcelorMittal USA enters into an agreement to sell its Sparrows Point facility and related assets to a joint venture group backed by Esmark and Wheeling-Pittsburgh, along with various industry and institutional investors.
ArcelorMittal USA has entered into an agreement to sell its Sparrows Point facility and related railroad, intellectual property and other assets for an undisclosed purchase price to a joint venture entity sponsored by Esmark Inc. and Wheeling-Pittsburgh Corp., with participation by industry and institutional investors.
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Esmark and Wheeling-Pittsburgh Corp. jointly led the efforts to establish the investor group and to conclude the agreement with ArcelorMittal, according to James P. Bouchard, who is Chairman and CEO of both Esmark and Wheeling-Pittsburgh.
Bouchard said the new corporation will be an independently operated and managed steel company with strong Wall Street backing.
Craig T. Bouchard will lead the new corporation as its Chairman and CEO.
When the transaction closes, Craig will relinquish all of his responsibilities with both Esmark and Wheeling-Pitt. At that time, Tom Modrowski will be named President of Wheeling-Pittsburgh Corp. and assume Craig’s responsibilities.
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Sparrows Point, formerly a Bethlehem Steel plant, is a fully integrated facility capable of producing 3.9 million tons of raw steel annually. Its products include hot- and cold-rolled sheet, galvanized sheet, Galvalume, tin mill products, and semi-finished steel. Markets served include construction, steel service centers, automotive, container and appliance.
"We have been working closely with the Department of Justice for several months to satisfy the terms of the consent decree and are pleased that this process has reached its conclusion", said Aditya Mittal, ArcelorMittal's CFO and head of Flat Carbon Americas.
"Sparrows Point has been an important part of ArcelorMittal USA and I know the facility will continue to thrive under new ownership," commented Michael G. Rippey, President & CEO of ArcelorMittal USA. "We greatly respect the uncertainty that the more than 3,000 employees at Sparrows Point have had to live with during this difficult period and we thank them for their service to our company, while wishing them the best of luck in the future."
Following Mittal Steel NV’s bid for Arcelor SA, Mittal agreed with the United States Department of Justice (DOJ) to divest the Sparrows Point Business. Sale of the Sparrows Point business remains subject to DOJ approval and customary closing conditions.
The sale is expected to close in the fall of this year. Once the transaction has been approved, ArcelorMittal says it will disclose all outstanding details.
ArcelorMittal USA, formerly known as Mittal Steel USA, with its affiliates, is the largest steel producer in the North America and the largest integrated steel producer in the United States. It serves a broad U.S. manufacturing base. ArcelorMittal USA is a subsidiary of ArcelorMittal.
ArcelorMittal is the world's largest steel company, with 320,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
