Allegheny Technologies Incorporated (ATI) announced on the 17th February 2004 that an Asset Purchase Agreement has been signed with Arcelor and J&L Specialty Steel, LLC under which a wholly owned ATI subsidiary will acquire substantially all of the assets of J&L Specialty Steel a leading manufacturer of flat-rolled stainless steel products.
The transaction, which is targeted for closing on May 3, 2004, is conditional upon the completion of due diligence, union wage bargaining arrangements, lender and regulatory approvals.
" This transaction provides an opportunity to accelerate the return to profitability of our flat-rolled stainless steel business," said Pat Hassey, Allegheny Technologies President and Chief Executive Officer. "The economics of the transaction are attractive. The combination and integration of the J&L Specialty Steel operations with our Allegheny Ludlum operations should improve our overall competitive position and create opportunities for growth, cost savings and operating synergies. In addition, this industry consolidation improves customer service by maintaining J&L's capacity in the U.S. stainless steel market.
" This is a unique opportunity for ATI and the employees of both Allegheny Ludlum and J&L Specialty Steel. Although several closing conditions must be satisfied, we are working diligently towards completion of a successful transaction."
Allegheny Technologies Incorporated (NYSE:ATI) is one of the largest and most diversified specialty materials producers in the world, with revenues of approximately $1.9 billion in 2003.
The Company has approximately 8,800 employees world-wide and its talented people use innovative technologies to offer growing global markets a wide range of specialty materials.
J&L Specialty Steel is a leading manufacturer of flat-rolled stainless steel products. The company is headquartered in Coraopolis, PA, with plants located in Midland, PA and Louisville, OH.
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