ArcelorMittal to Buy Bayou Steel for $475 Million
Expands long-products portfolio, adds scrap management assets
ArcelorMittal is in line to expand its U.S. raw steel capacity with an agreement to acquire Louisiana-based Bayou Steel for $475 million. Bayou is a producer of structural steel products, with a mini-mill in LaPlace, LA, and a rolling mill operation in Harriman, TN. The company has been owned by a private equity group since 2006. Diamond Capital Management paid a reported $150 million for the organization.
Jos Jacque, CEO of ArcelorMittal Long Carbon North America, stated: "We are excited by the opportunity that this acquisition represents as it further strengthens our long product portfolio, customer base and distribution network in North America. We look forward to welcoming our new colleagues and to capture the synergies generated by integrating these operations into the ArcelorMittal group."
Bayou Steel operates an electric melt shop in Louisiana, with two 80-ton EAFs, two two-strand billet casters, and a 21-in rolling mill. Its finished products include billets, equal- and unequal-leg angles, flats, channels, standard beams, and wide flange beams. The plant’s raw-steel capacity is listed at 800,000 tons/year.
Bayou’s Tennessee rolling operation produces angles, channels, flats, rounds, squares, and rebar products. The company shipped 510,000 tons of products in 2007.
The organization also includes Mississippi River Recycling, an automobile shredder at LaPlace, which also offers barge wrecking and full scrap-yard services at LaPlace and Harvey, LA. ArcelorMittal reports the company has a deep-water dock and distribution network, including four U.S. stocking locations.
Expands long-products portfolio, adds scrap management assets
ArcelorMittal is in line to expand its U.S. raw steel capacity with an agreement to acquire Louisiana-based Bayou Steel for $475 million. Bayou is a producer of structural steel products, with a mini-mill in LaPlace, LA, and a rolling mill operation in Harriman, TN. The company has been owned by a private equity group since 2006. Diamond Capital Management paid a reported $150 million for the organization.
Jos Jacque, CEO of ArcelorMittal Long Carbon North America, stated: "We are excited by the opportunity that this acquisition represents as it further strengthens our long product portfolio, customer base and distribution network in North America. We look forward to welcoming our new colleagues and to capture the synergies generated by integrating these operations into the ArcelorMittal group."
Bayou Steel operates an electric melt shop in Louisiana, with two 80-ton EAFs, two two-strand billet casters, and a 21-in rolling mill. Its finished products include billets, equal- and unequal-leg angles, flats, channels, standard beams, and wide flange beams. The plant’s raw-steel capacity is listed at 800,000 tons/year.
Bayou’s Tennessee rolling operation produces angles, channels, flats, rounds, squares, and rebar products. The company shipped 510,000 tons of products in 2007.
The organization also includes Mississippi River Recycling, an automobile shredder at LaPlace, which also offers barge wrecking and full scrap-yard services at LaPlace and Harvey, LA. ArcelorMittal reports the company has a deep-water dock and distribution network, including four U.S. stocking locations.
