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Transaction highlights include:
- Stelco to partner with existing, highly experienced
management team of Hamilton Sports Group
- One of the most storied franchises in all of Canadian
professional sports, the Hamilton Tiger-Cats have won eight Grey
Cup titles since 1950
- Hamilton Forge FC are a two-time winner of the Canadian
Premier League title and enjoy a rapidly growing fan base
HAMILTON, ON, Jan. 2, 2022 /CNW/ - Stelco Holdings Inc. (TSX:
STLC) ("Stelco" or the "Company") announced today
that it has executed agreements with the current owners of Hamilton
Sports Group ("HSG") for the purchase of a 40% equity interest in
the entities that own the Hamilton Tiger Cats and Hamilton's Forge FC, as well as the master
lease of Tim Hortons Field, a modern 23,000 seat multipurpose
stadium located centrally in Hamilton. The existing ownership group will
retain majority ownership of HSG and continue to manage the teams,
both of which have enjoyed much recent success. The Tiger-Cats
hosted and played in the Canadian Football League's
108th Grey Cup championship last month – the team's
second consecutive appearance in the league final. The Forge FC are
one of seven inaugural teams in the Canadian Premier League,
winning back-to-back titles in 2019 and 2020 and will compete is
the 2022 CONCACAF Champions League. The playing surface at Tim
Hortons Field received FIFA approval and has previously hosted 32
international matches during the Pan Am Games and will host an
upcoming FIFA World Cup qualification match between Canada and the
United States. Other notable events scheduled at Tim Hortons
Field include the Buffalo Sabres hosting the Toronto Maple Leafs in
the NHL's 2022 Heritage Classic in March of this year, and the
110th Grey Cup which will be hosted by the Tiger-Cats in
2023.
The transaction is subject to certain conditions and is expected
to close in the first quarter of 2022.
Stelco Executive Chairman and Chief Executive Officer,
Alan Kestenbaum said: "Stelco
remains committed to the city of Hamilton, the province of Ontario and the country of Canada by providing excellent career
opportunities to its employees in the Hamilton area and by continually giving back
to the community. In continuance of those values, Stelco is
thrilled to partner with Hamilton Sports Group and the entire
Tiger-Cats and Forge FC organizations. They put a tremendous
product on the field in both sports, and represent Hamilton proudly, much like Stelco. Since
arriving at Stelco in 2017, I have continued to be amazed at the
spirit shown by the local community and have experienced firsthand
the rabid local support for the Tiger-Cats. This is an overdue
union of two Hamilton icons, with
Stelco's 110+ year history in Hamilton and the Tiger-Cats' own history in
the city dating back over 150 years. We are excited by the growth
prospects of both teams and their respective leagues as new media
opportunities continue to be embraced and live sports content
remains the preeminent source of entertainment globally."
Kestenbaum continued, "As part of this partnership Stelco
together with both the Ti-Cats and the Forge FC intend to develop a
community engagement program focused on youth throughout
Hamilton and surrounding
communities to increase health and wellness by involving the
highest caliber talent available in both football and soccer with
our youth."
About Stelco
Stelco is a low cost, integrated and independent steelmaker with
one of the newest and most technologically advanced integrated
steelmaking facilities in North
America. Stelco produces flat-rolled value-added steels,
including premium-quality coated, cold-rolled and hot-rolled sheet
products, as well as pig iron and metallurgical coke. With
first-rate gauge, crown, and shape control, as well as uniform
through-coil mechanical properties, our steel products are supplied
to customers in the construction, automotive, energy, appliance,
and pipe and tube industries across Canada and the
United States as well as to a variety of steel service
centres, which are distributors of steel products. At Stelco, we
understand the importance of our business reflecting the
communities we serve and are committed to diversity and inclusion
as a core part of our workplace culture, in part, through active
participation in the BlackNorth Initiative.
Forward-Looking Information
This press release contains "forward-looking information" within
the meaning of applicable Canadian securities laws. Forward-looking
information may relate to our future outlook and anticipated events
or results and may include information regarding our financial
position, business strategy, growth strategy, budgets, operations,
financial results, taxes, dividend policy, plans and objectives.
Particularly, information regarding our expectations of future
results, performance, achievements, prospects or opportunities is
forward-looking information. In some cases, forward-looking
information can be identified by the use of forward-looking
terminology such as "plans", "targets", "expects" or "does not
expect", "is expected", "an opportunity exists", "budget",
"scheduled", "estimates", "outlook", "forecasts", "projection",
"prospects", "strategy", "intends", "anticipates", "does not
anticipate", "believes", or variations of such words and phrases or
state that certain actions, events or results "may", "could",
"would", "might", "will", "will be taken", "occur" or "be
achieved". In addition, any statements that refer to expectations,
intentions, projections or other characterizations of future events
or circumstances contain forward-looking information. Statements
containing forward-looking information are not historical facts but
instead represent management's expectations, estimates and
projections regarding future events or circumstances.
Undue reliance should not be placed on forward-looking
information. The forward-looking information in this press release
is based on our opinions, estimates and assumptions in light of our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Certain assumptions in respect of: the utilization of and
access to our production capacity; capital expenditures associated
with accessing such production capacity; the impact of COVID-19 on
our business and the broader market in which we operate; the
market's ability to recover from COVID-19; upgrades to our
facilities and equipment; our research and development activities
associated with advanced steel grades; our ability to source raw
materials and other inputs; our ability to supply to new customers
and markets; our ability to effectively manage costs; our ability
to attract and retain key personnel and skilled labour; our ability
to obtain and maintain existing financing on acceptable terms;
currency exchange and interest rates; the impact of competition;
changes in laws, rules, and regulations, including international
trade regulations; and growth in steel markets and industry trends
are material factors made in preparing the forward-looking
information and management's expectations contained in this press
release.
SOURCE Stelco