Luxemburg-based Steel Invest & Finance A.S - a 50/50 joint venture company between the Russian steel producer Novolipetsk Steel (NLMK) and Swiss-based Duferco - has reached a definitive agreement with US-based Winner Steel to acquire all assets of the company.
The total acquisition price, including Winner Steel's liabilities, is estimated to be approximately $211.6 million, subject to a working capital adjustment based on the closing balance sheet.
The NLMK-Duferco JV is now discussing with US-based Esmark the possibility of granting Esmark or its subsidiaries a six-month option to acquire up to 50 percent in Winner Steel at the same price paid by the NLMK-Duferco JV, plus agreed interest.
Winner Steel is the one of the largest galvanized producers in the US. The company currently has three galvanizing lines with a combined capacity of 1.2 million metric tons per year.
The acquisition of Winner Steel is viewed by the NLMK-Duferco JV as a good opportunity to expand its Farrell facility which is located next to Winner Steel and which has been the basic supplier of CR to the company.
The transaction is expected to be finalized in June, 2007.