ISG acquisition of Bethlehem receives court approval

ISG acquisition of Bethlehem receives court approval

It has been confirmed yesterday that International Steel Group's (ISG) offer for Bethlehem Steel acquisition has received approval from the Bankruptcy Court. The final purchase price includes approx. $790 million in cash and $15 million in stock at closing. Another $120 million will be paid within 75 days to cover certain short-term liabilities of Bethlehem. Additionally, the company assumes a $35 million commitment to Pension Benefit Guaranty Corporation. This acquisition is ISG's third since its foundation by the WL Ross & Co. LLC in February 2002. The previously acquired steel operations are Acme Steel and LTV Steel. Thus, ISG has become North America's largest steel producer with annual steel shipments expected to exceed 16 million ton and sales to reach $6 billion. ISG has now reached a capacity of producing almost a quarter of the US' flat rolled steel including hot rolled, cold rolled, coated, and tin plate products. It has also become the major producer of steel plate and rail. ISG is also funding USWA employee Transition assistance Program estimated to cost approximately $125 million. The transaction includes ISG receiving approximately $1.0 billion in net working capital currently on the books of Bethlehem in addition to all of Bethlehem's fixed assets. All operating production facilities under Bethlehem Steel will continue to operate under ISG ownership.