JMC Steel Completes Acquisition of Lakeside
04/02/2012 - JMC Steel Group, Inc. and Lakeside Steel Inc. have completed Lakeside's statutory plan of arrangement under the Business Corporations Act (Ontario). The Ontario Superior Court of Justice issued a final order approving the arrangement on March 29, 2012.
JMC Steel Group, Inc. and Lakeside Steel Inc. have completed Lakeside's statutory plan of arrangement under the Business Corporations Act (Ontario). Pursuant to the arrangement, JMC Steel Group, Inc., through a wholly owned subsidiary, acquired all of the issued and outstanding common shares of Lakeside at a price of CAD $0.2983 per share in cash.
The arrangement was conducted pursuant to an agreement dated January 25, 2012, among JMC, Lakeside, and 2312522 Ontario Inc. In connection with the arrangement, JMC entered into voting agreements with Jaguar Financial Corp., one of Lakeside's principal shareholders, as well as all of the directors and executive officers of Lakeside. The supporting shareholders agreed to vote their shares in favor of the arrangement.
Following completion of the arrangement, JMC now owns and controls all of the outstanding common shares of Lakeside.
The Ontario Superior Court of Justice issued a final order approving the arrangement on March 29, 2012. Further information was provided in a management information circular dated February 27, 2012, which was sent to Lakeside's shareholders.
Lakeside is the parent company of Lakeside Steel Corp., Lakeside Steel Alabama Inc., and Lakeside Steel Texas Inc. It has operating facilities located in Welland, Ont.; Thomasville, Ala.; and Corpus Christi, Tex.; and two processing facilities currently being constructed in Thomasville. Lakeside is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods.
Lakeside Steel Alabama will be a diversified steel pipe manufacturer with end-finishing and heat treat capabilities situated in the southern United States on completion of construction of the new facilities in Thomasville, Ala. Construction is currently under way.
JMC Steel Group, Inc. is the largest independent steel tubular manufacturer in North America, producing more than 2 million tons of pipe and tubular products a year and employing more than 1800 people. It operates 12 manufacturing facilities in the U.S. and Canada and is a market leader in steel hollow structural sections (HSS), standard pipe and electrical conduit. The JMC Steel Group, Inc. is headquartered in Chicago, Ill.; its two largest companies, Atlas Tube and Wheatland Tube, market products under their brand names.
