ArcelorMittal announces today the sale of its steel foundation distribution business in NAFTA, namely Skyline Steel and Astralloy (“Skyline Steel”) to Nucor Corporation (“Nucor”) for a total consideration of approximately $605 million on a debt free and cash free basis (and subject to customary closing adjustments).

The transaction includes 100% of ArcelorMittal’s stake in Skyline Steel’s operations in the NAFTA countries and the Caribbean. ArcelorMittal will continue to own and operate the foundation distribution businesses in the rest of the world.

Skyline Steel is a premier steel foundation distributor serving the US, Canada, Mexico and the Caribbean and is a wholly-owned subsidiary of ArcelorMittal. Skyline Steel distributes high quality products to service the most challenging applications in the construction and infrastructure industries, including marine construction and bridge and highway construction. Skyline Steel sources its products from a range of suppliers including Nucor which is currently its largest supplier of steel. In 2011, Skyline Steel generated revenues of $873 million.

The transaction is consistent with ArcelorMittal’s stated strategy of selective divestment of non-core assets. Its impact on the wider business will be limited since the Group has a strong sales network in the NAFTA region for its core product range, which will not be affected by this transaction.

As part of the transaction ArcelorMittal and Nucor will enter into certain long-term commercial agreements whereby the parties intend for ArcelorMittal to continue to provide Skyline Steel with a full range of sheet piling and wear resistant products, which ArcelorMittal is uniquely positioned to manufacture.

"Skyline Steel and Astralloy are strong specialist businesses with excellent prospects in their markets. However, this decision is very much in line with our strategy of focusing on core assets and reducing net debt”, said Aditya Mittal, CFO and member of the Group Management Board for ArcelorMittal. “As the largest supplier to Skyline Steel, Nucor was a natural buyer for this subsidiary business."

The transaction is subject to customary closing conditions, including but not limited to competition clearance, and is expected to be completed by the end of the second quarter of 2012.

About ArcelorMittal

ArcelorMittal is one of the world’s leading integrated steel and mining companies with a presence in 60 countries and primary steelmaking operations in 15 countries. It is the largest steel producer in Europe, among the largest in the Americas, and has a growing presence in Asia through its joint venture AM/NS India. ArcelorMittal sells its products to a diverse range of customers including the automotive, engineering, construction and machinery industries, and in 2024 generated revenues of $62.4 billion, produced 57.9 million metric tonnes of crude steel and, 42.4 million tonnes of iron ore. Our purpose is to produce smarter steels for people and planet. Steels made using innovative processes which use less energy, emit significantly less carbon and reduce costs. Steels that are cleaner, stronger and reusable. Steels for the renewable energy infrastructure that will support societies as they transform through this century. With steel at our core, our inventive people and an entrepreneurial culture at heart, we will support the world in making that change. ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

http://corporate.arcelormittal.com/
View all Press Releases