BUSINESS
By Andrea K. Walker and Andrea K. Walker,Sun reporter | June 26, 2008
Russian steelmaker OAO Severstal emerged yesterday as the apparent winner in a takeover fight for West Virginia-based Esmark Inc., agreeing to buy the steelmaker for $775 million plus debt in a deal that could boost production at Sparrows Point. The deal comes just seven weeks after Severstal completed its purchase of the Baltimore County steel mill from ArcelorMittal for $810 million, with promises to invest $500 million to boost output to full capacity. Yesterday a Severstal spokesman said that with the acquisition, Sparrows Point would supply semi-finished steel slabs to Esmark's struggling Wheeling-Pittsburgh steel plant.
BUSINESS
By JAY HANCOCK | December 19, 2007
The demise of a deal to sell the Sparrows Point steel plant is another disappointment for employees, whom suited financiers have jerked around for years. But it's worse for Esmark Inc. and Chicago's Bouchard brothers, who badly need the Point to subsidize their hemorrhaging Wheeling-Pittsburgh mills with cheap slabs. Esmark, however, would have owned only 2 percent of the company, we learned this week. So the people who wanted the deal most came to the table with the least. You needn't be a Goldman Sachs partner to understand that, two weeks after the U.S. Treasury secretary acknowledged "turmoil" in the credit markets, 2 percent down is not a great way to get a deal done.
BUSINESS
By Allison Connolly and Allison Connolly,Sun reporter | December 8, 2007
The sale of Sparrows Point is facing a Tuesday deadline -- the latest hurdle in the effort to complete the $1.35 billion deal. Owner Mittal Steel Co. NV of the Netherlands was unable to meet a Nov. 30 target to sell the Baltimore County plant to global investment group E2 Acquisition Corp., which is led by Esmark Inc., of Chicago Heights, Ill. The Justice Department ordered Mittal to sell Sparrows Point as part of a consent decree resolving antitrust issues arising from its merger with Arcelor SA of Luxembourg, creating the world's largest steelmaker.
BUSINESS
By Allison Connolly and Allison Connolly,Sun reporter | November 14, 2007
The local that represents workers at Sparrows Point is questioning the sale of the plant to an investment group led by Chicago-based Esmark Inc. United Steelworkers Local 9477 President John Cirri said yesterday that he sent a formal letter to the international union body - which had petitioned the Justice Department on Esmark's behalf to approve the deal - asking it to reconsider its support of the sale. Esmark and a group of investors and suppliers formed E2 Acquisition Corp. to purchase Sparrows Point from Mittal Steel Co. NV, of the Netherlands.
BUSINESS
By Allison Connolly and Allison Connolly,SUN REPORTER | November 13, 2007
The sale of the Sparrows Point steel mill won't close before the end of the month at the earliest, according to the head of the joint venture slated to take over the Baltimore County complex. Craig T. Bouchard, chief executive of the investment group E2 Acquisition Corp., said yesterday that E2's $1.35 billion deal to buy Sparrows Point from Mittal Steel Co. NV, of the Netherlands, remains on track but is taking longer than expected because it is complex. The joint venture is led by Chicago-based Esmark Inc., a metals distributor turned steelmaker.
BUSINESS
By Paul Adams and Paul Adams,Sun reporter | September 8, 2007
Under ArcelorMittal's ownership, the Sparrows Point steel mill was put in constant competition with the company's other global plants to prove itself the lowest-cost producer. At times, it lost, resulting in production cutbacks and temporary furloughs for hundreds of workers in periods of slow demand. But when its new owners take over next month, the Baltimore County mill will move to first in the corporate lineup, Craig Bouchard, who will head the company, told employees yesterday. Once the deal closes, the mill will take on the name Maryland Steel Sparrows Point, he disclosed yesterday.