Feb 16 2004
Butler Manufacturing Company, the world's leading provider of pre-engineered metal building systems and a leading producer of architectural aluminum systems and components, announced today that it plans to be acquired by BlueScope Steel Limited.
Butler CEO John Holland said the announcement was good news for Butler for several reasons. “BlueScope Steel appreciates the value of Butler's many strong brands, including its leading brand pre-engineered metal buildings, industry-leading distribution and our excellent design expertise and technical capabilities,” said Holland. “Being part of their organization will accelerate the revitalization of our North American Buildings operations and enable BlueScope Steel to combine forces with Butler's outstanding China business to capitalize on the opportunities we have in this dynamic region while opening the door to more global potential.
“This allows us to continue providing excellent quality and service to our Butler Builders and customers while joining a global player that really understands the steel business and the value of downstream products that Butler provides.”
BlueScope Steel will offer US$22.50 per share for approximately 6.4 million common shares outstanding, and assume net debt of approximately US$60 million, representing a total outlay of US$204 million (A$260 million). Butler and BlueScope Steel have reached agreement on the terms of the merger, and Butler's Board of Directors will recommend to Butler shareholders acceptance of BlueScope Steel's offer. The acquisition will be subject to approval by regulatory authorities in the United States. Butler shareholders are expected to vote on the proposed acquisition in April.
“Strategically, the combination of BlueScope Steel and Butler creates a very strong global player in steel building components and pre-engineered buildings. BlueScope Steel has a long-term growth strategy to increase its proportion of high value-added products, and to provide inspired solutions, particularly for the building and construction industry – a strategy that sets BlueScope Steel apart,” Mr. Adams said.
BlueScope Steel, headquartered in Melbourne, Australia, is the largest steel producer in Australia and New Zealand. This flat steel producer manufactures steel slab, hot and cold rolled coil, plate, tinplate and metallic painted and coated steel products such as the market-leading COLORBOND® and ZINCALUME® steel brands.
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