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ArcelorMittal to Acquire Bayou Steel
06/17/2008 - ArcelorMittal will acquire structural steel and bar products manufacturer Bayou Steel for US$475 million.
ArcelorMittal has signed an agreement to acquire structural steel products manufacturer Bayou Steel for US$475 million.
“We are excited by the opportunity that this acquisition represents as it further strengthens our long product portfolio, customer base and distribution network in North America,” said Jos Jacqué, CEO of ArcelorMittal Long Carbon North America.
Bayou Steel operates facilities in LaPlace, La., and Harriman, Tenn., producing billets, equal leg angles, unequal leg angles, flats, channels, standard beams and wide flange beams at its Louisiana facility, and merchant bar shapes (including angles, channels, flats, rounds, squares, and rebar) at its Tennessee rolling mill. Through its Mississippi River Recycling division, Bayou Steel operates an automobile shredder at the LaPlace facility, as well as barge wrecking and full-service scrap yards at LaPlace and its facility in Harvey, La.
The company also has a deep-water dock and distribution network, including four stocking locations in the United States. Total prime finished product shipments for fiscal year 2007 were about 510,000 tons which generated revenues of approximately $US 331 million. The company employs 630 people.
“We look forward to welcoming our new colleagues and to capture the synergies generated by integrating these operations into the ArcelorMittal group,” said Jacqué.
The transaction is subject to regulatory approval.
ArcelorMittal is the world's largest and most global steel company, with 310,000 employees in more than 60 countries. The company leads a number of major global markets and boasts leading R&D and technology, as well as sizeable captive supplies of raw materials and solid distribution networks. An industrial presence in 28 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal’s key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10% of world steel output.
