ArcelorMittal announces sale of Skyline Steel, Astralloy to Nucor Corporation for $605 million

ArcelorMittal announces today the sale of its steel foundation distribution business in NAFTA, namely Skyline Steel and Astralloy to Nucor Corporation for a total consideration of approximately $605 million. The transaction includes 100% of ArcelorMittal’s stake in Skyline Steel’s operations in the NAFTA countries and the Caribbean. ArcelorMittal will continue to own and operate the foundation distribution businesses in the rest of the world.

Skyline Steel is a premier steel foundation distributor serving the US, Canada, Mexico and the Caribbean and is a wholly-owned subsidiary of ArcelorMittal. It distributes high quality products to service the most challenging applications in the construction and infrastructure industries, including marine construction and bridge and highway construction. Skyline Steel sources its products from a range of suppliers including Nucor which is currently its largest supplier of steel. In 2011, Skyline Steel generated revenues of $873 million.

The transaction is consistent with ArcelorMittal’s strategy of selective divestment of non-core assets. As part of the transaction ArcelorMittal and Nucor will enter into certain long-term commercial agreements whereby ArcelorMittal will to continue to provide Skyline Steel with a full range of sheet piling and wear resistant products, which ArcelorMittal is uniquely positioned to manufacture.