RG Steel, LLC, an affiliate of The Renco Group Inc, has completed the stock purchase of three US assets from Severstal US Holdings LLC.

As a result of the completion of this purchase, RG Steel has 7.5 million tons of annualized capacity, making it the fourth largest flat rolled steel company in the United States.

RG Steel now comprises integrated steel plants at Sparrows Point in Md, Warren in Ohio and Wheeling WVa, including finishing facilities in Yorkville and Martins Ferry in Ohio and the Wheeling Corrugating Company in Wheeling in WVa. In addition, RG Steel now owns 50% of both Mountain State Carbon LLC, a coke making facility in Follansbee in WVa and Ohio Coatings Company in Yorkville in Ohio.

Mr John Goodwin president & CEO of RG Steel said “Our plan for RG Steel is to become the leader in the manufacture and supply of flat rolled steel and to provide exceptional customer service. We have the facilities, we have the capital, we have the talent and we have the will to succeed. Our plants and our products are well known in our markets, and we will capitalize on our strengths to become the leading producer of flat rolled steel in the United States.”

He continued that “Preparations are under way to restart the primary operations through the hot strip mill at our Sparrows Point plant. Employees are being recalled to that facility as we plan for a safe and orderly resumption of operations. We anticipate that the blast furnace at Sparrows Point will become operational in May.”

As part of the transaction, Wells Fargo Capital Finance, part of Wells Fargo & Company and GE Capital, Corporate Finance, structured a new four year USD 750 million syndicated credit facility. The facility, which was oversubscribed, has 12 international banks and financial institutions in the syndicate with Wells Fargo, GE Capital Markets Inc, Bank of America Merrill Lynch and UBS Investment Bank acting as Joint Lead Arrangers and Joint Book Runners.

For this transaction, Cadwalader Wickersham & Taft were retained for legal counsel while UBS and Metal Strategies were retained as financial advisors.

The Renco Group, Inc is a private family owned investment holding company founded in 1975 by Ira L Rennert.