Evraz Group S.A. completed its acquisition of IPSCO Inc.
Date Closed
June 12, 2008
Lead Office
Montréal
Value
4.03 Billion USD
On June 12, 2008 Russian steel maker Evraz Group S.A. completed its acquisition of IPSCO Inc.'s Canadian plate and pipe business for approximately US$2.9 billion from SSAB Svenskt Stal AB. With plants in Regina, Calgary and Red Deer, IPSCO is a leading North American producer of steel plate, as well as pipe for the oil and gas industry. Evraz entered into an agreement with SSAB and its affiliates to acquire IPSCO's North American Tubulars business for approximately US$4.039 billion subject to adjustment. At closing, Evraz acquired the Canadian portion of such business for approximately US$2.9 billion and pursuant to a back-to-back transaction with Evraz, Russian steel maker OAO TMK acquired IPSCO's U.S. business from SSAB for approximately US$1.25 billion. The transaction was financed by Evraz in part out of the proceeds of a Eurobond issuance by Evraz and by new senior credit facilities underwritten by ABN Amro Bank and by TMK in part out of a credit facility underwritten by ABN AMRO Bank N.V.
McCarthy Tétrault advised Evraz with a team that was led by Lorna Telfer, and included Yves Comtois, Frederic Harvey, Clemens Mayr, and Madeleine Renaud.