LONE STAR STEEL CO HEADLINESSteel Producers /
Lone Star Steel Co
U. S. Steel Completes Purchase of Lone Star Technologies
Jun. 15, 2007 United States Steel Corp. announced completion of its acquisition of Lone Star Technologies, Inc. for an aggregate purchase price of approximately $2.1 billion.
U. S. Steel financed the acquisition through a combination of cash on hand and financing under its existing receivables program, new bank facilities and a portion of the proceeds of its recent offering of $1.1 billion in senior unsecured notes.
Lone Star shareholders will receive $67.50 in cash for each issued and outstanding share of Lone Star. Mellon Investor Services LLC has been appointed as paying agent for the transaction.
“This acquisition significantly expands our tubular product offerings, our production capacity and our geographic footprint,” said U. S. Steel Chairman and CEO John P. Surma. “We welcome Lone Star's employees, customers and communities to the U. S. Steel family.”
U. S. Steel says it plans to combine the operations of Lone Star with U. S. Steel's Tubular Division under the leadership of Joseph Alvarado, who served as President and Chief Operating Officer of Lone Star. Mr. Alvarado has been named Vice President-Tubular Operations of U. S. Steel.