NORTH AMERICA: Atlas Holdings has formed Orion Steel Companies following the completion of its acquisition of the Evraz North America businesses which supply engineered steel products for the rail, energy, infrastructure and industrial markets in the USA and Canada.
UK-incorporated Russian steelmaker Evraz plc was sanctioned by the UK in May 2022 because of Russia’s war against Ukraine. The UK issued a licence allowing the continuation of the Evraz North America operations as an independent entity, and in August 2022 Evraz plc began soliciting proposals for a sale.
The deal with Atlas which was completed on July 31 includes an upfront cash payment of US$50m, and up to US$450m of contingent deferred consideration payable subject to the achievement of certain milestones following the sale. Evraz said the proceeds would be dealt with in accordance with a licence granted by the UK and in compliance with applicable sanctions rules.
Orion Steel ’to become a central player in the North American market’
The Orion Steel business includes Rocky Mountain Steel Mills in Pueblo, Colorado; Oregon Steel Mills in Portland, Oregon; and Interpro Pipe and Steel in Regina, Saskatchewan and locations across Alberta, Canada.
Collectively, the companies employ 3 400 people across two electric arc furnace steel facilities, 12 steel product mills and 17 scrap recycling facilities. The company said Rocky Mountain Steel is the largest rail supplier in North America.
Orion Steel is headed by former US Steel executive Doug Matthews, succeeding Skip Herald who remains on the board. ‘As a well-capitalised strategic supplier, Orion Steel is poised to become a central player in the North American market, helping to ensure economic and security interests of the United States and Canada are advanced through significant, local production’, Matthews said. ‘This is a historic operation heading into a bold new chapter.’
Atlas is based in Greenwich, Connecticut, and owns 29 companies in sectors including automotive supply, building materials, capital equipment, construction services, food manufacturing and distribution, metals processing, packaging, paper, power generation, printing, pulp, supply chain management and wood products.
