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Severstal-metiz to Sell Russian Welding Business to Lincoln Electric
12/30/2010 - OAO Severstal’s Severstal-metiz metalware segment has signed a definite agreement to sell its Severstal-metiz Welding Consumables to Lincoln Electric Holdings.
OAO Severstal’s Severstal-metiz metalware segment has signed a definite agreement to sell its Severstal-metiz Welding Consumables to Lincoln Electric Holdings, Inc.
The transaction will include acquisition of manufacturing operations as well as the exclusive distribution rights of the Severstal brand of welding consumables. Financial terms of the deal were not disclosed.
“This acquisition will add to our manufacturing capacity in this fast growing market and complement Mezhgosmetiz-Mtsensk OAO (MGM), our recent Russian acquisition,” said John M. Stropki, Chairman and CEO. “Severstal’s extensive stick electrode offering, along with solid wire and flux cored wire products and combined with solid wire products from MGM, will make Lincoln Electric a leading consumables manufacturer in the CIS countries. The two acquisitions complement our imported machine products offering and will expand our market presence in the region.
Severstal-metiz Welding Consumables is a leading Russian manufacturer of welding consumables. Manufacturing production facilities are based in Orel, Russia, with 283 employees. Severstal-metiz Welding Consumables’ 2010 estimated sales were approximately $40 million USD.
“The sale of Severstal-Metiz Welding Consumables will allow us to concentrate fully on our core business (wire and wire products) and continue to provide our clients with competitive product of highest quality,” said Oleg Veter, CEO of Severstal-metiz Group of Companies.
The Severstal-metiz transaction is under review by Russian regulatory authorities and is expected to close during the 2011 first quarter.
The Severstal-metiz group of companies incorporates all of OAO Severstal’s metalware assets, and is amongst the top European producers of wire and wire products. Severstal-metiz’s production sites are located in Russia, the Ukraine and Europe, and its primary customers are in the construction, oil and gas, automotive, metallurgy and engineering industries.
Lincoln Electric is an international leader in the design, development and manufacture of arc welding products, robotic arc-welding systems, plasma and oxy-fuel cutting equipment and has a leading global position in the brazing and soldering alloys market. Headquartered in Cleveland, Ohio, Lincoln has 39 manufacturing locations, including operations and joint ventures in 19 countries and a worldwide network of distributors and sales offices covering more than 160 countries.
