Nov 2 2007
United States Steel Corporation announced today that it has completed the acquisition of Stelco Inc. and that Stelco has been renamed U.S. Steel Canada Inc.
Commenting on the acquisition, U.S. Steel Chairman and CEO John Surma said, "We welcome the customers, employees and communities of Stelco to the U. S. Steel family. This acquisition expands the footprint of our North American flat-rolled operations with facilities on both sides of the Great Lakes to better respond to customer needs, including the ability to process U.S. Steel Canada slabs at other U.S. Steel facilities."
In this transaction, each share of Stelco common stock has been converted into the right to receive $38.50 Canadian per share, and warrants to acquire Stelco common stock have been converted into the right to receive $27.50 Canadian. CIBC Mellon Trust Company has been appointed Depositary for both common stock and warrants. Holders of common stock and warrants should submit certificates for their common stock and warrants together with the required letter of transmittal to the Depositary. Questions can be directed to the Depositary at (800) 387-0825.
U.S. Steel has financed the acquisition cost of approximately $1.2 billion and the refinancing of approximately $750 million of existing Stelco debt through a combination of cash on hand, borrowings under a $500 million three-year term loan and a $400 million one-year term loan, and $400 million of sales under a receivables purchase agreement that expires in 2010.
In addition, U.S. Steel named the management team for U.S. Steel Canada. Douglas R. Matthews has been named president and general manager-U.S. Steel Canada; William C. Harrison has been named vice president and chief financial officer-U.S. Steel Canada; Charles J. Shuster has been named director-human resources, U.S. Steel Canada; Scott D. Buckiso has been named plant manager-Lake Erie Works; and Bryan P. Vaughn has been named plant manager-Hamilton Works. The changes are effective immediately.
"The leadership team that will oversee U.S. Steel Canada is composed of individuals with strong, diverse backgrounds acquired during years of service at U.S. Steel facilities in the United States and Central Europe," said Surma. "Their experience, coupled with the talents and expertise of the employees they will work side-by-side with, will help ensure a smooth transition for the operations and the customers they serve."
Matthews arrives in Canada from U.S. Steel Serbia, an integrated steelmaking operation with annual raw steel production capability of 2.4 million net tons. As vice president and general director of U.S. Steel Serbia since May 2006, he has been responsible for overseeing all activities at facilities in Smederevo, Sabac and Kucevo. Harrison has spent the last four years serving as controller at Great Lakes Works near Detroit, Mich. Shuster was recently promoted to manager of employee relations for Mon Valley Works, which has facilities near Pittsburgh and Philadelphia, Pa., after spending nearly one and a half years in the same role at Great Lakes Works. Buckiso has acted as general manager-finishing at U.S. Steel Serbia's Smederevo location since September 2006. Vaughn has served as plant manager for the Irvin Plant and Fairless Plant, Mon Valley Works' finishing facilities located just outside Pittsburgh and Philadelphia, Pa., respectively, since June 2006.