Area steel company to consider sale, merge
By 05/10/2007 00:00:00
MIDLOTHIAN - The Chaparral Steel Company announced it is considering a range of options which could include mergers, acquisitions or even sale of the company.
According to a press release, the company has retained Goldman, Sachs and Company to assist it in the review.
During the process, the company will be considering a full range of possible alternatives which could include possible strategic partnerships, mergers, acquisitions, sale or recapitalizations.
The company also stated there can be no assurance this process will result in a transaction, meaning it's possible nothing could happen as a result of the review.
The press release went on to state the company does not intend to disclose developments unless its board of directors approves a definitive transaction.
'The company will only pursue transactions that reflect the full value of this great company,' stated Tommy A. Valenta, president and chief executive officer.
News reports have stated Cary Baetz, spokesman for Chaparral Steel, said selling the company was not the only option being considered by the company for the purpose of increasing its global reach and appeal.
Merger and acquisition activity in the global steel industry has been hot with steel companies combining across borders to form giants with ever-larger slices of the world market.
Mittal Steel Company in Nevada will close its acquisition of Arcelor this summer creating the world's largest steel producer with nearly 10 percent of world production.
Arcelor Mittal, has seen its shares climb 28 percent so far this year.
In other recent deals, Russia's biggest steel-maker, Evraz Group, agreed to buy Oregon Steel Mills Inc., while U. S. steelmaker Esmark Inc. took control of Wheeling-Pittsburgh.
Chaparral is the second largest producer of structural steel beams in North America along with being a leading recycling company.