denotes premium content | Oct 15 2008 
News
posted 25 Jun 2008
Deal news
Evraz completes Ipsco acquisition
Russian steel-pipe maker Evraz has finally completed its acquisition of ISPCO Tubulars, purchasing the company for $4.025bn from Sweden’s SSAB, but passing on IPSCO’s US tubular business to Russian rival OAO TMK for $1.25bn.
Evraz will hold on to IPSCO’s Canadian plate and pipe business, but has sold-on for about $500m a 51% share of NS Group, which was part of IPSCO, with an option for TMK to purchase the remaining 49%.
The purchase by Evraz follows on from its $2.3bn acquisition of Oregon Steel Mills in November 2006 as part of a broader strategy to build a strong platform in the North American downstream markets of steel plate and tubular products.
The net cost of the transaction to Evraz will be about $2.3bn. The company had planned to raise $2.1bn in bridge finance to support the acquisition, but opted for a eurobond placement instead. The balance is to be raised via a non-recourse term loan arranged at the acquired company level.
Credit Suisse and Goldman Sachs acted as financial advisors to Evraz, while Cleary Gottlieb Steen & Hamilton LLP and Blake, Cassels & Graydon LLP provided legal counsel.
