BlueScope unit in $730M accord to buy Imsa Steel

Dec 20, 2007 | 01:55 PM | Michael Cowden

The North American division of Australia's BlueScope Steel Ltd. has agreed to acquire Ternium SA subsidiary Imsa Steel Corp. for $730 million.

BlueScope executives said the acquisition of Imsa Steel, the U.S. operations of Mexico's Imsa Acero SA de CV, will allow the company to expand its North American presence, while Ternium executives said that the sale will allow it to focus on core businesses. The deal remains subject to customary closing conditions and antitrust clearance, but is expected to close in the first quarter.

The move comes less than a year after Ternium agreed to acquire Grupo Imsa SA de CV for $1.7 billion from the Mexican galvanizer's founders and major shareholders (AMM, May 1). Ternium also assumed $1.5 billion in debt. Ternium in October was rumored to be looking for a buyer for Imsa's U.S. operations, and BlueScope had been considered a top contender (AMM, Oct. 30).

Ternium is selling Imsa's interests in Steelscape Inc., ASC Profiles Inc., Varco Pruden Buildings Inc. and Metl-Span LLC. Combined, the group had $1.2 billion in annual net sales in 2006, Ternium said. The Steelscape facilities have an annual production capacity of 450,000 tonnes of galvanized steel and 300,000 tonnes of pre-painted steel; ASC Profiles makes building components; Varco Pruden produces pre-engineered metal buildings; and Metl-Span makes insulated steel panels.....