Yesterday Ternium S.A. announced that its subsidiary, IMSA Acero, S.A. de C.V., has entered into a stock purchase agreement with BlueScope Steel North America Corporation, a subsidiary of BlueScope Steel Limited for the sale of IMSA's interests in Steelscape, Inc., ASC Profiles Inc., Varco Pruden Buildings Inc. and Metl-Span LLC.
Ternium will continue to own Steelscape's Shreveport, LA plant, which has a total annual production capacity of approximately 250,000 metric tons of galvanized steel and 200,000 metric tons of pre-painted steel. Ternium also will keep its pre-engineered metal buildings and insulated steel panels businesses in Mexico.
The transaction values the assets at US$730 million on a cash-free and debt-free basis and is subject to working capital and other adjustments. BlueScope Steel will take over approximately US$20 million in under-funded pension liabilities. The transaction is subject to U.S. antitrust clearance and other customary conditions and is expected to close in the first quarter of 2008.
The assets being sold accounted for annual net sales of approximately US$1.2 billion in 2006. Steelscape, excluding the Shreveport facility, has a total annual production capacity of approximately 450,000 metric tons of galvanized steel and 300,000 metric tons of pre-painted steel. ASC Profiles and Varco Pruden Buildings are in the building components and pre-engineered metal buildings businesses, respectively, while Metl-Span manufactures insulated steel panels.
Ternium is one of the leading steel companies in the Americas, offering a wide range of flat and long steel products. With its main operations in Mexico, Venezuela and Argentina and 25,000 employees, Ternium has annual sales of approximately US$10 billion and annual shipments of approximately 12 million tons of finished steel products.