London: The world’s largest steel producer ArcelorMittal said on 16 June it has signed an agreement to acquire Bayou Steel, a producer of structural steel products in the US, for $475 million.
The transaction, however, is subject to regulatory approval, a statement from ArcelorMittal said.
Commenting on the agreement, Jos Jacque, the CEO of ArcelorMittal Long Carbon North America, said the acquisition would further strengthen the group’s product portfolio, customer base and distribution network in North America.”
Bayou Steel, which has facilities in LaPlace, Louisiana, Harrinman and Tennessee, is an independent producer of medium and light structural steel and bar size products. Its Louisiana facility produces billets, equal leg angles, flats, channels, standard beams and wide flange beams.
The Tennessee rolling mill of Bayou Steel produces merchant bar shapes, including angles, channels, flats, rounds, square and rebar.
Through its Mississippi river recycling division, Bayou Steel operates an automobile shredder at the LaPlace facility.
The statement said that Bayou Steel’s total prime finished products shipments for fiscal year 2007 stood at 510,000 tonnes, which generated revenues of approximately $331 million.