The world's largest steelmaker ArcelorMittal has announced that it has signed an agreement for the acquisition of US-based Bayou Steel at a cost of $475 million.
Bayou steel is specialized in the production of medium and light structural steel and bar products. The producer has facilities in LaPlace, Louisiana and Harriman, Tennessee, and also has a deep water dock and a distribution network.
Bayou Steel's finished product shipments for fiscal year 2007 were 510,000 tons, worth $331 million.
Commenting on the acquisition, CEO of ArcelorMittal Long Carbon North America, Jos Jacqué, said, "We are excited by the opportunity that this acquisition represents as it further strengthens our long product portfolio, customer base and distribution network in North America. We look forward to welcoming our new colleagues and to capture the synergies generated by integrating these operations into the ArcelorMittal group."