ArcelorMittal acquires Bayou Steel for $475 mn

Tue 17 Jun 2008

Global steel major ArcelorMittal has acquired US-based Bayou Steel, a producer of structural steel products, for $475 million. The transaction is subject to regulatory approvals.

Bayou Steel is an independent producer of medium and light structural steel and bar size products. The company has facilities in LaPlace, Louisiana, and Harriman in Tennessee.

"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. We look forward to welcoming our new colleagues and to capture the synergies generated by integrating these operations into the ArcelorMittal group," ArcelorMittal Long Carbon North America CEO Jos Jacqué said.

Bayou Steel's Louisiana facility produces billets, equal leg angles, unequal leg angles, flats, channels, standard beams and wide flange beams.

The Tennessee rolling mill produces merchant bar shapes, including angles, channels, flats, rounds, and squares, as well as rebar.

The company also has a deep water dock and distribution network, including four stocking locations in the United States. Its total prime finished product shipments for fiscal year 2007 were about 510,000 tonne, generating revenues of over $331 million.

Source BS Reporter

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