Severstal completes acquisition of WCI Steel

Severstal on July 8 completed its previously announced acquisition of WCI Steel, a market leader in the production of value-added steel products based in Warren, Ohio. WCI Steel will be known as Severstal Warren, Inc.

Severstal acquired all of the outstanding equity of WCI for a total cash consideration of  $140 mln.

WCI’s total annual steel-making capacity of 1.22 mln metric tn is focused on high-quality, custom flat-rolled steel for use in demanding applications. Together with Severstal’s current US operations, WCI will solidify the Company’s position as one of North America’s leading producers of high-quality flat-rolled steel for the automotive, appliance, furniture, construction and energy markets.

Citi and Raymond James acted as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLPacted as legal counsel to Severstal.

Gregory Mason, CEO of Severstal International and COO of  Severstal, commented, “Steel production in Warren has long contributed high-quality products to a region that is at the historical center of steelmaking in the US. Severstal is ready to carry that tradition forward in a way that is consistent with our strategy for growth and investment in North America; a strategy that views the experience and talent of the people at WCI Steel as a key part of  Severstal’s continued success.”