Global resources group BHP Billiton and United States aluminium group Alcoa on Tuesday announced that they have completed the sale of Integris Metals to Ryerson Tull for $644-million (about R3,7-billion).
The $644-million will be made up of $410-million in cash plus assumption of Integris’s debt, which is about $234-million.
Alcoa and BHP Billiton each owned 50% of Integris Metals.
Integris Metals, a metals service-centre company engaged in the processing and distribution of metals, was formed in November 2001 through the combination of Reynolds Aluminum Supply Company and North America Metals Distribution, the metals distribution businesses of Alcoa and BHP Billiton, respectively.
Integris Metals has about 2 400 employees.
BHP Billiton and Alcoa were advised in the transaction by Deutsche Bank Securities and JP Morgan Securities.
Ryerson Tull is one of North America’s leading distributors and processors of metals, with 2003 revenues of $2,2-billion.
The company services customers through a network of service centres across the US and in Canada, Mexico and India.
Integris Metals is the fourth-largest metals service centre in North America, with leading market positions in aluminum and stainless steel and 2003 revenues of $1,5-billion.
To finance the acquisition, Ryerson Tull tapped its new $1,1-billion revolving credit agreement, which closed simultaneously with the acquisition.
Additionally, as previously disclosed, the company completed the private placement of $175-million of convertible senior notes and $150-million of senior notes in the fourth quarter of 2004, following the announcement of the definitive agreement to purchase Integris Metals on October 26 2004.
Ryerson Tull plans to capture efficiencies and generate annualised cost savings of at least $30-million, within the next 18 to 24 months. — I-Net Bridge