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SSAB Completes Acquisition of Ipsco
07/19/2007 - SSAB Svenskt Stal AB has successfully completed its acquisition of Ipsco for U.S. $160 per share.
SSAB Svenskt Stal AB has successfully completed its acquisition of Ipsco Inc. for U.S. $160 per share. The acquisition has been approved by shareholders, Competition Authorities and the Boards of Directors of both companies.
"I am very pleased to announce the successful closing of the Ipsco acquisition. This is yet another milestone in our SSAB 2010 strategy toward becoming the global leader in value-added steel," said Olof Faxander, CEO and President of SSAB. Through the acquisition of Ipsco, we will not only acquire a platform for future growth and expansion, we will also extend our market presence in North America.”
SSAB says that Ipsco will be organized as a division in the SSAB Group. David Sutherland, Ipsco's former President and CEO, is retiring, and Ipsco's shares will be delisted from the New York Stock Exchange and the Toronto Stock Exchange.
"I wish to thank David Sutherland for the very positive cooperation during the very intensive work on uniting our two companies," said Olof Faxander. "David Sutherland has also played a very important role in the development of Ipsco into one of the most successful steel companies in North America."
The company also said it expects the transaction to give an immediate and significant accretion to SSAB's earnings and cash flow, which will result in an improved strategic and financial position for SSAB.
"This combination of SSAB and Ipsco accelerates the opportunities for customers, employees, suppliers and our communities alike to grow and prosper over the coming years. Ipsco's dynamic growth and success over its history will continue when merged with the global organization of SSAB,” said John Tulloch, who is now head of division Ipsco and a new Executive Vice President in the SSAB Group. “We look forward to being a vital part of the new SSAB's future success."
Ipsco is a leading producer of energy tubulars and steel plate in North America with an annual steelmaking capacity of 4.3 million tons. Ipsco operates four steel mills, eleven pipe mills, scrap processing centers, and product finishing facilities in 25 geographic locations across the United States and Canada. The company's pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing, tubing, line pipe, and large-diameter transmission pipe. Ipsco also provides premium connections for oil and gas drilling and production.
SSAB Svenskt Stal AB is a Swedish-based publicly traded corporation with a leading European position in Quenched & Tempered heavy plate and EHS/UHS steel sheet. The Group comprises four divisions: Division Sheet and Division Heavy Plate, the steel operations with steel shipments of 3.1 million tonnes in 2006; Plannja, a processing company in building products; and Tibnor, the Group's trading arm supplying a broad product range of steel and metals. The Group has sales revenues of almost U.S. $4.6 billion, 8800 employees, operations or offices in over 40 countries, and a worldwide sales presence.
