June 16, 2008
ArcelorMittal Announces Acquisition of Bayou Steel
ArcelorMittal, the world's largest and most global steel company, today announced that it has signed an agreement to acquire Bayou Steel, a producer of structural steel products with facilities in LaPlace, Louisiana, and Harriman, Tennessee, for US$475 million. The transaction is subject to regulatory approval.
Bayou Steel is an independent producer of medium and light structural steel and bar size products. The 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. 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, Louisiana. 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.
Commenting, Jos Jacque, CEO of ArcelorMittal Long Carbon North America, said: "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 is the world's largest and most global steel company, with 310,000 employees in more than 60 countries.
ArcelorMittal is the leader in all major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. An industrial presence in 28 European, Asian, African and American countries exposes the company to all the key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
ArcelorMittal key financials for 2007 show revenues of USD 105.2 billion, with a crude steel production of 116 million tonnes, representing around 10 per cent of world steel output.
ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MTP), Brussels (MTBL), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).