Evraz NA to be acquired by equity firm

Greenwich, Connecticut-based Atlas Holdings has announced the signing of a definitive agreement to acquire Evraz Inc. NA and Evraz Inc. NA Canada and those firms’ respective subsidiaries.

The combined Evraz facilities include recycled-content electric arc furnace (EAF) steel mills in Pueblo, Colorado, and Portland, Oregon, in the United States and in Regina, Saskatchewan, Canada, and steel facilities of several types in Alberta, Canada. Additionally, the Evraz Recycling business unit operates more than 15 metal recycling facilities in western Canada and the western U.S.

The roots and corporate parentage of Evraz trace to Russia, which is why in May 2022, shortly after Russia’s invasion of Ukraine, London-based Evraz PLC—which Atlas calls “the ultimate parent of Evraz North America”—was sanctioned by the government of the United Kingdom.

On that same date, however, the U.K. government also issued a license permitting Evraz North America to continue business operations. “Since sanctions were imposed, Evraz North America has operated as a fully independent entity separate from Evraz PLC,” Atlas states.

Soon-to-be new owner Atlas describes itself, along with its affiliates, as owning and operating 27 companies that employ more than 57,000 people worldwide. The firm refers to itself as having “extensive experience working in partnership with national, provincial and local governments and with Canadian labor unions.”

The Atlas website lists several portfolio companies in the basic materials sector, including recycled-content tissue maker Marcal Paper, Thunder Bay Pulp and Paper, Crown Paper Group, copper wire producer International Wire Group and steel fabricators Veritas Steel and Permasteelisa Group.

The Evraz assets it will acquire employ some 3,400 people in the U.S. and Canada with annual melt shop capacity of 2.3 million tons and downstream finished steel capacity of 3.5 million tons per year, according to Atlas.

“Evraz North America’s Pueblo, Colorado, facility is the world’s largest solar-powered steel mill and the largest rail supplier in North America,” Atlas says, adding “Products made at Evraz North America regularly contain 98 percent-plus recycled scrap material.”

“Our approach is straightforward and consistent: we invest in industrial businesses for the long term and provide the capital and leadership expertise to grow those companies and ensure success,” says Atlas partner Sam Astor.

“Despite the global dynamics of the steel market and unique challenges facing the business, the Evraz team has continued to drive the business forward and we want to thank them for their hard work and dedication,” Astor adds.

“By collaborating with customers in the rail, industrial and energy sectors—alongside every level of government, the United Steelworkers, Unifor, the International Union of Operating Engineers, the Iron Workers and our dedicated team—we’re charting an exciting path forward for the company,” he remarks.

“This is an exciting new chapter for Evraz North America,” says James (Skip) Herald, president and CEO of Evraz North America. “It brings long-term opportunity for our people, our customers and the communities where we operate.”

Herald adds, “Atlas shares our belief that a strong future starts with investing in the people who make it happen. Their strategic approach and track record of operational investment make them the right partner for our next chapter. Most importantly, this partnership ensures a bright and stable path forward for our teams across the U.S. and Canada.”

Atlas says it expects the closing of the sale to take place later this year, noting it is subject to closing conditions being met. The firm’s announcement does not refer to any potential name change for the acquired Evraz operations.