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.