Commercial Metals Company prepares to acquire Croatian Mill
Commercial Metals Company (CMC), headquartered in Irving, Texas, announced that its Swiss subsidiary, Commercial Metals International AG, has signed a definitive purchase agreement with the Croatian government to acquire Valjaonica Cijevi Sisak (Sisak).
Sisak is an electric arc furnace-based steel pipe company with a pipe making capacity of about 305,000 metric tons annually.
CMC will pay approximately US$7 million for the shares, assume debt of over approximately US$41 million, invest about US$40 million in capital expenditures and increase working capital by approximately US$39 million. CMC also has committed to retaining the employees of Sisak for a period of three years. The purchase agreement is subject to closing conditions which are expected to be met within the next sixty days.