31 Oct 2008 14:30
31 October, 2008
Novolipetsk Steel completes the acquisition of a 100% interest in Beta Steel
Further to the announcement of September 4, 2008, NLMK has completed the acquisition of a 100% interest in Beta Steel, a U.S. hot-rolled steel producer, from a group of private shareholders for an all cash consideration of USD350 million, on a debt free, cash free basis. The purchase price has been reduced from the original level of USD400 million by USD50 million.
Beta Steel operates an Electric Arc Furnace (EAF) melt shop of 700,000 tpa capacity and a hot strip rolling mill of 1,100,000 tpa capacity. In FY2007, the company's sales volume reached 547,000 metric tonnes, revenues were USD324 million, with EBITDA of USD21 million.
The transaction was financed from existing cash funds.
For further information:
NLMK
Anton Bazulev, Investor Relations
+7 495 915 1575
Jon Simmons, Financial Dynamics
+44 207 831 3113
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Novolipetsk Steel (NLMK)
Headquartered in Lipetsk, Russia, NLMK is a leading steel producer with annual revenues of approximately US$7.7 billion and 70,000 employees in production facilities across Russia, Europe and the United States. NLMK's shares are traded in Russia, and on the London Stock Exchange. NLMK produces a variety of steel products such as slabs and billets, hot rolled, cold rolled, galvanized and electrical sheet, rebar, plate and other high value-added products. NLMK's customers include companies like JMC, which use the company's products to make finished steel products. In 2007, NLMK sold its products in more than 80 countries.For more information, please, visit: www.nlmksteel.com
Beta Steel
Located in Portage, Indiana, Beta Steel is a producer of HRC specializing in the production and sale of hot rolled coil to primarily steel service centers and tube and pipe manufacturers. The company operates an EAF melt shop and hot strip rolling mill of 700,000 tpa and 1,100,000 tpa capacity correspondingly, and employs c.350 people. The company, established in 1992, has modern and well invested production facilities allowing it supply a wide range of high quality HR products. The company provides good customer service and industry-leading delivery times, being consistently ranked well above the marketplace average. For more information, please, visit: www.betasteelcorp.com