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Russia's Novolipetsk Steel to buy U.S. John Maneely for $3.5 bln

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Novolipetsk Steel [LSE: NLMK], one of Russia's largest steel producers, said on Wednesday it had signed a final agreement to acquire the U.S.-based pipe manufacturer John Maneely Company (JMC) for $3.53 billion.
MOSCOW, August 13 (RIA Novosti) - Novolipetsk Steel [LSE: NLMK], one of Russia's largest steel producers, said on Wednesday it had signed a final agreement to acquire the U.S.-based pipe manufacturer John Maneely Company (JMC) for $3.53 billion.

Under the deal, Novolipetsk Steel will acquire the U.S. steel pipe and tube producer from a group of shareholders, including global private equity firm Carlyle Group and the Zekelman family, on a debt free, cash free basis. The deal is subject to regulatory approvals and is expected to be closed in the fourth quarter.

"The acquisition of JMC fits with NLMK's stated strategy of portfolio diversification and downstream integration in the core markets of the company. It strengthens NLMK's position in North America and provides an entry point into an important and high-margin end market," Novolipetsk Steel said in a statement.

Established through the merger of John Maneely Company and Atlas Tube in 2006 and headquartered in Ohio, JMC operates eleven plants in five U.S. states and one Canadian province. The company has annual production capacity of over 3 million metric tons of steel pipe and tube, Novolipetsk Steel said.

In the 12-month period ending on June 30, 2008, JMC shipped 2.1 million metric tons of pipes and generated revenue of $2.4 billion, Novolipetsk Steel said.

Novolipetsk Steel currently has two production assets in the U.S.: Duferco Farrell Corp. and Sharon Coating, LLC.

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