sells several facilities
Severstal North America, a subsidiary of OAO
Severstal, announced that The Renco Group, Inc. has signed a
definitive agreement to purchase Severstal’s operations at Warren,
Ohio, Wheeling, West Virginia, and Sparrows Point, Maryland.
The transaction was expected to close in March 2011, and was
subject to customary closing conditions, including expiration
or early termination of the Hart-Scott-Rodino waiting period.
As transaction consideration, Severstal will
receive $125 million in cash, a $100 million secured note, and
the repayment of $317 million of third-party debt at closing.
Renco will also assume various Severstal financial liabilities
including employee-related and environmental liabilities totaling
The Renco Group, Inc. is a family owned,
private holding company that makes long term investments in companies
across a range of industries including mining, mineral recovery,
metals production/fabrication, defense and automotive supply
Evercore Partners and Raymond James and Associates,
Inc. are acting as Severstal’s financial advisers, and Skadden,
Arps, Slate, Meagher & Flom LLP is acting as Severstal’s legal