is set to acquire the US Coil Coatings business from Cornerstone Building Brands for $672 million (US$500 million).
The steel producer said Coil Coatings is the second largest metal painter in the US, with a total capacity of around 900,000 tonnes per annum, predominantly serving commercial and industrial construction applications across seven facilities.
“The acquisition of Coil Coatings is a significant step forward in our growth plans for North America. It almost triples our US metallic coating and painting capacity to over 1.3 million metric tonnes per annum, from around 475,000 tonnes per annum at present, and gives us immediate and direct access to the large and growing Eastern US region,” said chief executive officer Mark Vassella.
“Following the completion of the acquisition of Coil Coatings, the US$770 million investment in the expansion of North Star, the US$220 million establishment of BlueScope Recycling and the continued investment in the BlueScope Properties Group, the company’s investment in North America now totals over $4.5 billion, employing more than 4,000 employees.”
The company said the acquisition will be fully funded from cash on the balance sheet and will immediately be earnings per share accretive.
The transaction is targeted for completion in 2022, subject to regulatory approval.
Shares in BlueScope Steel (ASX:BSL)
are trading 1.4 per cent higher at $20.77.