Bayou Steel Corp. has entered into a definitive agreement with an entity managed by Black Diamond Capital Management, L.L.C., an existing holder of Bayou Steel's common stock. Pursuant to this agreement, Black Diamond would acquire all of the outstanding shares of Bayou Steel's common stock.
The total per share purchase price for the Bayou Steel shares is expected to be approximately $75
Jerry Pitts, president and CEO of Bayou Steel, said "Bayou Steel believes the transaction with Black Diamond represents a very attractive per share price. Black Diamond is a committed strategic partner and this transaction will provide continuity in the present management team as well as a strong financially sound independent company that will ensure the cost effective modernization and expansion of our key production facilities and processes. “
Bayou Steel Corporation manufactures light structural and merchant bar products in LaPlace, Louisiana and Harriman, Tennessee. The Company also operates stocking locations along the inland waterway system near Pittsburgh, Chicago, and Tulsa.