Novolipetsk buys US steel company
Thursday, 14 August 2008
Russian steelmaker Novolipetsk Steel has signed an agreement to expand its presence in the US by buying US steel pipe and tube manufacturer John Maneely Company from a shareholder group including private equity firm Carlyle Group for $3.53 billion, Novolipetsk said in a statement Wednesday, according to Internet.
The Beechwood, Ohio-headquartered John Maneely Company, or JMC, is the largest independent maker of tubular steel in North America and has estimated 2008 sales of around US$3.0 billion, Novolipetsk said.
The deal is subject to regulatory approval and expected to close in the fourth quarter of 2008.
JMC operates 11 plants in five US states and in Canada. Novolipetsk is buying it on a debt-free, cash basis from Carlyle and the Zekelman family, using existing bank financing commitments, it said.
"We are delighted to have secured an entry into the highly attractive US pipe and tube market," said Novolipetsk chairman, billionaire Vladimir Lisin. Novolipetsk already operates two manufacturing facilities in the United States.
The Beechwood, Ohio-headquartered John Maneely Company, or JMC, is the largest independent maker of tubular steel in North America and has estimated 2008 sales of around US$3.0 billion, Novolipetsk said.
The deal is subject to regulatory approval and expected to close in the fourth quarter of 2008.
JMC operates 11 plants in five US states and in Canada. Novolipetsk is buying it on a debt-free, cash basis from Carlyle and the Zekelman family, using existing bank financing commitments, it said.
"We are delighted to have secured an entry into the highly attractive US pipe and tube market," said Novolipetsk chairman, billionaire Vladimir Lisin. Novolipetsk already operates two manufacturing facilities in the United States.