BlueScope Steel Acquires OneSteel Sheet & Coil Distribution Assets
BlueScope will pay inventory value at completion (as at 30 September this was A$23.1 million) for the assets and assumed liabilities and expects to incur net integration costs of A$7 million.
Following integration, in FY2015 the acquisition is expected to exceed our return on capital hurdle and be EPS accretive for the company.
Commenting on the acquisition, BlueScope’s chief executive Australia and New Zealand, Mr. Mark Vassella, said “As with the pending acquisitions of Orrcon and Fielders from Hills Holdings, these OneSteel businesses are close to BlueScope’s core Australian operations. The acquisitions are a further step towards improving the efficiency with which we can serve Australian customers by lowering costs through the integration of these businesses with our existing operations.”
The acquisition is subject to Australian Competition and Consumer Commission approval. Completion is targeted for the end of the December 2013 quarter.