JSW Steel to acquire Acero Junction Holdings
JSW Steel has entered into an agreement with JSM International, Acero Junction Holdings and Acero Junction for acquisition of 100% shares of Acero Junction Holdings, a Delaware Corporation for a cash consideration of upto US $80.85 million. The transaction is likely to be completed in 60 days subject to fulfillment of conditions precedents and other terms as per the Stock Purchase Agreement.
“The acquisition of Acero provides a unique opportuntiy for the Compay to establish its presence in Ohio, United States and gain deeper access to the North American market,” the company said in a filing to BSE.
Acero Junction Holdings was set up in July 2016 and recorded revenue of $44.27 million until the end of December 2017. It owns 100% of Acero Junction Inc., which runs a steel mill that produces hot-rolled coils. The company supplies hot-rolled bands to coil processors, cold-rolled strip producers, pipe and tubers, original equipment manufacturers and steel service centres across North America.
The Ohio facility includes an electric arc furnace, ladle metallurgy furnace, slab continuous casting machine, and a 3 million tonne per annum hot strip mill. According to its website, Acero Junction began operations in July 2016 by acquiring the electric arc furnance and rolling mill of the Wheeling Pittsburgh plant, which has an operating history dating back to 1872. The mill was re-commissioned and started producing hot-rolled coils from May 2017.
@EPC World Media