ArcelorMittal announces today the sale of its steel foundation
distribution business in NAFTA, namely Skyline Steel and Astralloy
("Skyline Steel”) to Nucor Corporation ("Nucor”) for a total
consideration of approximately $605 million on a debt free and cash free
basis (and subject to customary closing adjustments). The transaction
includes 100% of ArcelorMittal’s stake in Skyline Steel’s operations in
the NAFTA countries and the Caribbean. ArcelorMittal will continue to
own and operate the foundation distribution businesses in the rest of
Skyline Steel is a premier steel foundation distributor serving the US,
Canada, Mexico and the Caribbean and is a wholly-owned subsidiary of
ArcelorMittal. Skyline Steel distributes high quality products to
service the most challenging applications in the construction and
infrastructure industries, including marine construction and bridge and
highway construction. Skyline Steel sources its products from a range of
suppliers including Nucor which is currently its largest supplier of
steel. In 2011, Skyline Steel generated revenues of $873 million.
The transaction is consistent with ArcelorMittal’s stated strategy of
selective divestment of non-core assets. Its impact on the wider
business will be limited since the Group has a strong sales network in
the NAFTA region for its core product range, which will not be affected
by this transaction.
As part of the transaction ArcelorMittal and Nucor will enter into
certain long-term commercial agreements whereby the parties intend for
ArcelorMittal to continue to provide Skyline Steel with a full range of
sheet piling and wear resistant products, which ArcelorMittal is
uniquely positioned to manufacture.
"Skyline Steel and Astralloy are strong specialist businesses with
excellent prospects in their markets. However, this decision is very
much in line with our strategy of focusing on core assets and reducing
net debt”, said Aditya Mittal, CFO and member of the Group Management
Board for ArcelorMittal. "As the largest supplier to Skyline Steel,
Nucor was a natural buyer for this subsidiary business."
The transaction is subject to customary closing conditions, including
but not limited to competition clearance, and is expected to be
completed by the end of the second quarter of 2012.
ArcelorMittal is the world's leading steel and mining company, with a
presence in more than 60 countries.
ArcelorMittal is the leader in all major global carbon steel markets,
including automotive, construction, household appliances and packaging,
with leading R&D and technology. The Group also has a world class mining
business with a global portfolio of over 20 mines in operation and
development, and is the world’s 4th largest iron ore producer. With
operations in over 22 countries spanning four continents, the Company
covers all of the key industrial markets, from emerging to mature, and
has outstanding distribution networks.
Through its core values of sustainability, quality and leadership,
ArcelorMittal commits to operating in a responsible way with respect to
the health, safety and well-being of its employees, contractors and the
communities in which it operates. It is also committed to the
sustainable management of the environment. It takes a leading role in
the industry's efforts to develop breakthrough steelmaking technologies
and is actively researching and developing steel-based technologies and
solutions that contribute to combat climate change. ArcelorMittal is a
member of the FTSE4Good Index and the Dow Jones Sustainability World
In 2011, ArcelorMittal had revenues of $94.0 billion and crude steel
production of 91.9 million tonnes, representing approximately 6 per cent
of world steel output. The Group's mining operations produced 54 million
tonnes of iron ore and 8 million tonnes of metallurgical coal.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock
exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal visit: www.arcelormittal.com