Big River Steel, Osceola, Arkansas, has announced it completed the transaction announced earlier this month in which Pittsburgh-based United States Steel Corp. would become a minority owner of Big River Steel’s scrap recycling and steel production company.
Under the terms of the agreement, which assumes a $2.325 billion enterprise value, U. S. Steel will hold a 49.9 percent ownership interest in Big River’s Osceola-based Flex Mill, which is a LEED-certified steel mill and is the newest and one of the most technologically advanced flat-rolled mills in North America, according to a Big River Steel news release.
U. S. Steel’s investment will sit alongside of the majority ownership position held by Big River Steel’s executive management team, the Arkansas Teachers Retirement System, the preferred equity ownership position held by KM BRS LLC, a subsidiary of Koch Minerals and TPG Furnace, an affiliate of TPG Growth.
“I applaud U. S. Steel’s leadership team and board of directors for taking this bold step as part of their effort to advance their company by drawing from the best of both the integrated and mini mill steel making communities,” says David Stickler, chief executive officer of Big River Steel. “With U. S. Steel joining the already formidable ownership group at Big River Steel, I anticipate an acceleration of our growth and expansion plans. I look forward to working closely with Dave Burritt, U. S. Steel’s president and chief executive officer, and the other members of his team to prove that the most advanced steels in the world can be produced in the United States in an environmentally sustainable manner.”
Big River Steel is currently installing equipment and technology at its Osceola mill that will double the company’s annual production capacity from 1.65 million tons to 3.3 million tons of flat-rolled steel. The efforts underway will facilitate Big River Steel’s ability to produce even higher grades of electrical steel, demand for which is expected to increase with continued focus on energy efficiency and the increase in hybrid and electric vehicle sales.