Swedish Firm Looks to Acquire Ipsco

IPSCO Inc. and SSAB Svenskt Stal AB have entered into an agreement providing for IPSCO to be acquired by SSAB for around $7.7 billion. The transaction has been approved by both companies’ boards of directors.

David Sutherland, IPSCO’s president and CEO, said, "This transaction delivers significant value to IPSCO's shareholders. It also joins IPSCO with a leading player in the global steel industry and reinforces our already solid position as a leading supplier of steel plate and energy tubulars in North America.

"SSAB is a highly regarded company with a first- rate work force that shares many similar values with IPSCO, including a commitment to quality products, workplace safety, and manufacturing excellence. As part of this new, larger company, we will have a more diversified product offering that will enhance our ability to better serve both existing and new customers."

"The acquisition of IPSCO represents a further step in SSAB's 2010 strategy towards global leadership in value added steel. Through this transaction, SSAB will accelerate its growth and acquire a platform for future expansion and market presence in North America. The transaction will result in an immediate and significant accretion to SSAB's earnings and cash flow, bringing significant strategic and financial benefit to SSAB, said Olof Faxander, SSAB president and CEO.

IPSCO, which operates four steel mills, 11 pipe mills, and a number of scrap metal processing facilities, has annual steel making capacity of 4.3 million tons.

SSAB is a Swedish based publicly traded corporation. The group comprises four divisions: Division Sheet and Division Heavy Plate are the steel operations with steel shipments of 3.1 million metric tons last year.