Cleveland-Cliffs Inc. 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.
In connection with the acquisition of ArcelorMittal USA, which includes the interests of ArcelorMittal USA of 60 percent in I/N Tek L.P. and 50 percent in I/N Kote L.P., Cleveland-Cliffs also acquired Nippon Steel Corporation’s remaining interests of 50 percent in I/N Kote and 40 percent in I/N Tek, for a total consideration of approximately $183 million. With this additional transaction, Cleveland-Cliffs becomes the sole owner of 100 percent of I/N Tek and I/N Kote, which generated a combined $121 million of adjusted EBITDA in 2019.
“The acquisition by Cleveland-Cliffs of ArcelorMittal USA, boosted by our buyout of Nippon Steel from the I/N Tek and I/N Kote joint ventures, opens a new chapter in the history of the steel business in the United States,” said Lourenco Goncalves, chairman, president and CEO. “The assets we have acquired will be combined with our existing footprint, including AK Steel, Precision Partners, AK Tube, several mining and pelletizing facilities, our research and development center, and the most modern direct reduction plant in the world, which we have just started to operate in Toledo, Ohio.
“Our new footprint expands our technological capability and enhances our operational flexibility, elevating Cleveland-Cliffs to a prominent role as a major player in supporting American manufacturing, American future investments in infrastructure, and the prosperity of the American people through good paying middle-class jobs,” Goncalves said.
“The sale of ArcelorMittal USA is an opportunity to create excellent value for our shareholders and reposition our North American footprint on our most competitive assets, for which we have targeted growth plans. The recently announced EAF at Calvert and the new hot-strip mill in Mexico, which will complete next year, will further enhance these assets and ensure we have the flexibility and quality to meet demand, particularly for higher-added value products. We intend to remain a strategic player in the NAFTA region,: said Lakshmi Mittal, chairman and CEO of ArcelorMittal.