BlueScope Steel to Acquire U.S. Coil Coatings Business

SEATTLE (Scrap Monster): BlueScope Steel announced that it has entered into a binding agreement with Cornerstone Building Brands, Inc. towards acquisition of its Coil Coatings business for a sum of $500 million, thus expanding its footprint in the U.S. The deal is subject to customary closing conditions.

Coil Coatings operates seven facilities, with a combined capacity of around 90,000 tonnes per annum, primarily serving the commercial and industrial construction sectors. The acquisition of the business provides BlueScope Steel with a significant opportunity for long-term earnings growth. The company plans to integrate these facilities with its existing U.S. business value chain.

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Mark Vassella, Managing Director and CEO, BlueScope Steel said that the acquisition is a significant step forward in its extensive growth plans for North America. It is expected to triple its U.S. metallic coating and painting capacity to over 1.3 million metric tonnes per annum, compared to present capacity of around 475,000 tonnes per annum. Moreover, the acquisition provides immediate and direct access to the large and growing Eastern U.S. region, Vassella added.

BlueScope Steel had earlier planned to expand its painting operations into the Eastern region via a greenfield paint line.