The Russian steel producer Evraz Group (Evraz) has announced that the company and its 100-percent owned subsidiary Titan Acquisition Sub, Inc. (Titan) have entered into a definite agreement to acquire US-based plate producer Claymont Steel for an aggregate price of approximately $564.8 million.
Under the terms of agreement, Titan will make a cash tender offer to acquire all outstanding shares in Claymont Steel and then merge with Claymont Steel, thus making the latter the wholly-owned subsidiary of Evraz upon the completion of the transaction.
The cash tender offer, which has been unanimously recommended for acceptance by Claymont Steel's BoD to its shareholders, is expected to be commenced during the week starting December 17 and will be subject to customary conditions, including antitrust clearance, and acquisition by Evraz of a majority of Claymont Steel's shares.
Commenting on the agreement, Claymont Steel's chairman and CEO Jeff Bradley, said: "We believe that this transaction delivers significant value to our stockholders. We are excited at the opportunity to become part of a company with a significant international presence. As a plate producer, we believe Claymont Steel will be able to contribute to and complement Evraz's North American operations at Evraz Oregon Steel Mills, Inc. We believe that our customers will also support this deal."
On the other hand, Evraz's chairman and CEO Alexander Frolov stated that the transaction represents another important step in the implementation of Evraz's long-term stategy to develop higher value downstream markets. "It will expand our presence in North America, one of the most important steel markets globally. Having acquired Oregon Steel Mills at the beginning of this year, we laid the foundation of our American plate business and intend to continue to strengthen it now with Claymont Steel's steel plate production. We will also be happy to have Claymont Steel's experienced personnel joining Evraz's multinational team," he added.