Evraz inks $564.8M deal to buy Claymont Steel [UPDATE]

Dec 10, 2007 | 12:32 PM | Maria Guzzo

Russia's Evraz Group SA and wholly owned subsidiary Titan Acquisition Sub Inc. have agreed to purchase Claymont Steel Holdings Inc., Claymont, Del., for $564.8 million.

The transaction marks another inroad into North America for Evraz, which purchased Oregon Steel Mills Inc., Portland, Ore., 13 months ago for $2.3 billion.

Under the terms of the agreement, Titan will make a cash tender offer for all of Claymont's common stock and then merge with the company. Claymont Steel's board of directors has unanimously recommended that shareholders of the electric-furnace-based operation, which makes custom carbon plate, accept the offer.

H.I.G. Capital LLC Inc., Miami, which owns about 42.6 percent of Claymont Steel's issued common stock, has committed to tender its shares in the offer. H.I.G. purchased Claymont in June 2005 from China International Trust & Investment Corp. (Citic) for $74.4 million. The company changed its name from CitiSteel USA Inc. and went public in 2006.....

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