Renco to Purchase Severstal North America Operations The Renco Group, Inc. signed a definitive agreement to purchase Severstal North America operations at Warren, Ohio; Wheeling, W.Va.; and Sparrows Point, Md. The deal will provide Renco’s newly created RG Steel LLC subsidiary with about 7.5 million tons of annual steel production capacity, making it the fourth-largest steel producer in the U.S. The sale will leave the remainder of Severstal North America focused on its Dearborn and Columbus facilities. The transaction is expected to be completed this month.
Severstal will receive $125 million in cash for its Warren, Wheeling and Sparrows Point assets as well as a $100 million secured note and the repayment of $317 million of third-party debt at closing. Renco will also assume various Severstal financial liabilities, including employee-related and environmental liabilities totaling $650 million.
Industrial Heatingreported in January that the United Steelworkers wanted The Renco Group to buy the former Wheeling-Pittsburgh steel plants from Severstal. The Renco Group is a family owned holding company that makes long-term investments in companies across a range of industries including mining, mineral recovery, metals production/fabrication, defense and automotive supply.
Renco to Purchase Severstal North America Facilities
March 3, 2011