MELBOURNE -(Dow Jones)- BlueScope Steel Ltd. (Australia:BSL) (BSL.AU) said Thursday it has agreed to buy IMSA Steel Corp. for US$730 million from Ternium S.A. (NYSE:TX) (TX) to expand its operations in the U.S.
BlueScope, Australia's largest steelmaker, has been seeking bolt-on acquisitions to meet growing demand for steel products and build on its competitive advantages.
The acquisition, which will be funded by a 364-day bridge facility, is expected to be earnings per share neutral in the year ending June 30 and add to earnings next fiscal year, it said in a statement.
IMSA Steel had sales in the year ended Dec. 31, 2006, of about US$1.2 billion, with earnings before interest, tax, depreciation and amortization of US$86 million, BlueScope said.
BlueScope expects to realize about US$40 million a year of cost savings within three years, the company said.
The purchase is subject to regulatory approval and is expected to be completed in early calendar year 2008, BlueScope said.
-By Andrew Harrison, Dow Jones Newswires; 61-3-9671-4323; andrew.harrison@ dowjones.com
(END) Dow Jones Newswires 12-19-07 1807 Copyright (c) 2007 Dow Jones & Company, Inc.
