International Steel and Bethlehem Steel Sign Purchase Agreement

Cleveland, OH— International Steel Group Inc. (ISG) and Bethlehem Steel Corporation (Bethlehem) finalized the terms by which ISG will acquire the steelmaking business of Bethlehem and submitted the agreement to the U.S. Bankruptcy Court for approval.

In these actions, the two steelmakers, North America's second and third largest integrated producers, executed a formal Asset Purchase Agreement (APA) detailing the terms and conditions of the sale. This follows the previously announced acceptance of ISG's offer in summary form by a unanimous vote of Bethlehem's Board of Directors on February 8, 2003, and the recent clearance of the Hart Scott Rodino waiting period. The APA is subject to Bankruptcy Court approval at a hearing, which is expected to be held on or about April 22, 2003. ISG believes the APA will be approved at that time and that the closing will occur shortly thereafter.

Under the terms of the APA, ISG will acquire substantially all of Bethlehem's assets, including the steelmaking operations in Burns Harbor, Indiana; Sparrows Point, Maryland; and Steelton, Coatesville and Conshohocken, Pennsylvania. Other assets included in the purchase agreement include Bethlehem's interests in Hibbing Taconite Mining Company in Hibbing, Minnesota; steel finishing plants in Ohio, New York, and Indiana; and joint ventures in Illinois, Indiana, Mississippi and Florida. The purchase will also include the Martin Tower office building in Bethlehem, Pennsylvania, other properties and working capital. The total purchase price will be $1.5 billion. Consideration is a combination of cash and the assumption of certain debt and other obligations, including environmental, employee-related, tax and lease obligations.

"We are eager to welcome the Bethlehem employees and their outstanding facilities to the ISG family, and we look forward to serving our nation's premier manufacturing companies with excellent quality steel made under the most efficient conditions in the industry," said Rodney Mott, ISG's President and Chief Executive Officer.

ISG also said that it has reached agreement with the United Steelworkers of America (USWA) on the principles of a basic labor agreement based on the labor contract recently ratified by ISG employees at the former LTV Steel and Acme Steel facilities. The company anticipates that negotiations to finalize the agreement for ratification by Bethlehem workers will be concluded in the near future. The company also indicated that it would be working with the USWA and its local union officials at Bethlehem locations to address transition and plant specific issues.

ISG was organized by WL Ross & Co. LLC in February 2002 to acquire world- class steelmaking assets and, in full cooperation with the USWA, restructure those facilities to be internationally competitive. ISG purchased the principal steelmaking assets of The LTV Corporation in April 2002, including the integrated facilities in Cleveland, Ohio and East Chicago, Indiana; a finishing facility in Hennepin, Illinois; and coke making facilities in Warren, Ohio. In October 2002, ISG purchased a sheet mini-mill in Riverdale, Illinois, which was previously operated by Acme Steel Company. The acquisition of Bethlehem's assets, if consummated, would make ISG the largest integrated producer of steel in North America, with over 16 million tons of annual shipments.

Home/Current News
Previous Issues
Equipment Spotlight
New Product Showcase

Editorial Calendar

Place a Classified Ad
Request a Quote
Marketing Services

Information Resources
Events Calendar
National Organizations
Regional Organizations
Auto Organizations
General Links
Add a Link


Advanced Search
Contact Us
Update Subscription 

877-777-0737    •     Fax 419-535-3225     •     P.O. Box 351748, Toledo, OH  43537-1748
©Copyright AR Publishing Co. All rights reserved. Any reproduction of content requires written permission.