Mitsui Acquires US Steel Sheet Processing Company

Mitsui Corporation announced on Thursday the firm agreed with Steel Technologies, a steel sheet processor in USA, on acquirement of Steel Technologies’ all stocks at about US$ 530 million (63 billion yen). Mitsui and Steel Technologies have had a cooperative relationship for 20 years. Mitsui aims to strengthen its steel distribution power by this acquisition to merge Steel Technologies’ 25 bases in North America. Mitsui’s steel processing capacity in North America will increase to 4 million tonnes per year from current 1.5 million tonnes. Mitsui aims more value added steel distribution and builds up its steel business in North America.Mitsui pays US$ 30 per share of Steel Technologies, which is the sum of the closing price on February 27 and the premium of about 65%. Total acquisition cost includes debt of approximately US$ 136 million. The buyout needs approval by related authorities and majority of shareholders at Steel Technologies’ extraordinary general meeting in late June.Mitsui already presents steel processing service for Japanese automobile makers through 6 bases of Mi-Tech Steel, a joint company between Mitsui and Steel Technologies. Mitsui will widen its network of processing bases by this acquisition and increase processing level for synergetic effects and functions when Japanese automakers expand their market shares in USA.Steel Technologies was established in 1971 headed in Louisville, Kentucky and listed in NASDAQ in 1985. The firm has pickling, cold-rolling and blanking equipment at the processing bases in USA, Canada and Mexico, 50% of whose shipment is for automobile industry. The annual sales were US$ 880 million with gross asset of US$ 270 million and about 1,000 employees in fiscal 2006 ended September.