Ternium completes acquisition of CSA Siderúrgica do Atlântico
September 07 2017 - 7:00AM
Ternium S.A. (NYSE:TX) announced today that it has completed its
previously announced acquisition of a 100% ownership interest in
thyssenkrupp Slab International B.V. (“tkSI”) and its wholly-owned
subsidiary CSA Siderúrgica do Atlântico Ltda. (“CSA”) from
thyssenkrupp AG (“tkAG”). In addition, tkAG assigned to Ternium a
2.0 million tons per year agreement to supply slabs from CSA’s
facility in Brazil to thyssenkrupp’s former Calvert re-rolling
facility in Alabama, United States.
“This acquisition brings another
state-of-the-art facility into Ternium’s industrial system, along
with CSA’s highly-skilled personnel and know-how, thereby enhancing
our differentiation and value-added capabilities in the steel
production supply chain,” said Daniel Novegil, CEO of Ternium.
“Upon integration, Ternium customers will not only benefit from our
expanded high-end steel slabs capacity, but also see the results of
an enhanced product development and supply chain management effort
that will increase our high-end steel specialization in Mexico and
Argentina. We move forward as a strengthened organization across
our strategic industrial sectors in Latin America.”
Ternium disbursed EUR1.4 billion, on a
cash-free, debt-free basis, for the acquisition of both the tkSI
shares and the slab supply agreement. Prior to the closing of the
transaction, and following certain cash contributions by tkAG
through tkSI, CSA repaid in full its EUR0.3 billion financial debt
with BNDES. To finance its acquisition, Ternium entered into a
five-year syndicated term loan facility in a principal amount of
USD1.5 billion.
Ternium will integrate CSA into its industrial
and supply-chain systems. As part of this process, CSA has changed
its corporate name to Ternium Brasil Ltda. (“Ternium Brasil”), and
Marcelo Chara, formerly Industrial Director of Ternium’s operations
in Argentina, has been named Chief Executive Officer
(Diretor-Presidente) of Ternium Brasil. In addition, tkSI has
changed its corporate name to Ternium Staal B.V. Ternium will
consolidate Ternium Staal B.V.’s balance sheet and results of
operations in its consolidated financial statements beginning in
September 2017.
Forward Looking Statements
Some of the statements contained in this press
release are “forward-looking statements”. Forward-looking
statements are based on management’s current views and assumptions
and involve known and unknown risks that could cause actual
results, performance or events to differ materially from those
expressed or implied by those statements. These risks include
but are not limited to risks arising from uncertainties as to gross
domestic product, related market demand, global production
capacity, tariffs, cyclicality in the industries that purchase
steel products and other factors beyond Ternium’s control.
About Ternium
Ternium is Latin America’s leading flat steel
producer, with operating facilities in Mexico, Brazil, Argentina,
Colombia, the southern United States and Central America. The
company offers a broad range of high value-added steel products for
customers active in the automotive, home appliances, construction,
capital goods, container, food and energy industries through its
manufacturing and service center network, and advanced customer
integration systems. More information about Ternium is available at
www.ternium.com.
Sebastián Martí
Ternium - Investor Relations
+1 (866) 890 0443
+54 (11) 4018 8389
www.ternium.com
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