Cleveland Cliffs Inc announced that it has successfully completed the acquisition of substantially all of the operations of ArcelorMittal USA LLC and its subsidiaries, forming the largest flat-rolled steel producer in North America. On a full-year 2019 basis, the combined Company generated pro-forma revenues of approximately USD 17 billion and combined adjusted EBITDA of approximately USD 1.7 billion, including previously disclosed expected synergies.
In connection with the acquisition of ArcelorMittal USA, which includes the interests of ArcelorMittal USA of 60% in I/N Tek LP and 50% in I/N Kote LP, Cleveland-Cliffs also acquired Nippon Steel Corporation’s remaining interests of 50% in I/N Kote and 40% in I/N Tek, for a total consideration of approximately USD 183 million. With this additional transaction, Cleveland-Cliffs becomes the sole owner of 100% of I/N Tek and I/N Kote, which generated a combined USD 121 million of adjusted EBITDA in 2019.
The ArcelorMittal facilities included in the transaction are:
Steelmaking: Indiana Harbor, Burns Harbor, Cleveland, Coatesville, Steelton, Riverdale
Finishing: Columbus, Conshohocken, Double G Coatings JV (ArcelorMittal USA’s 50% interest), Gary Plate, I/N Tek JV with Nippon Steel (ArcelorMittal USA’s 60% interest), I/N Kote JV with Nippon Steel (ArcelorMittal USA’s 50% interest), Piedmont, Weirton
Mining and Pelletizing: Hibbing JV (ArcelorMittal USA’s 62.3% interest), Minorca
Met Coal & Coke making: Monessen, Princeton, Warren
Goldman Sachs & Co LLC acted as financial advisor and Jones Day served as legal counsel to Cleveland-Cliffs. BofA Securities acted as lead arranger for the Company’s amended and upsized Asset Based Lending facility.