ArcelorMittal to sell distribution business in NAFTA to Nucor Corp for $605 mn
18 May 2012
ArcelorMittal, the world's largest steelmaker today said that it will sell its steel foundation distribution business in NAFTA to its smaller rival Nucor Corp, for $605 million.
The sale is part of ArcelorMittal's plan to sell non-core assets to reduce debt and brings the total number of announced non-core asset sales to about $2.2 billion since September 2011, according to Dow Jones Newswires.
The Luxemburg-based steelmaker is selling Skyline Steel and Astralloy in the NAFTA countries and the Caribbean, while it will continue to own and operate the foundation distribution businesses in the rest of the world.
Skyline Steel, which generated revenues of $873 million in 2011, is a steel foundation distributor serving the US, Canada, Mexico and the Caribbean. It distributes high quality products to service the most challenging applications in the construction and infrastructure industries, including marine construction and bridge and highway construction.
The Parsippany, New Jersey-based company sources its products from a range of suppliers including Nucor which is currently its largest supplier of steel.
Birmingham, Alabama-based Astralloy was acquired by ArcelorMittal in 2008. It produces high quality, cost effective products for abrasion, wear and impact resistance.