Business
Dofasco to Acquire Copperweld Mechanical Tubing and Automotive Components Businesses
Dofasco to Acquire Copperweld Mechanical Tubing and Automotive Components Businesses.
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[{"type":"text","content":"\n\n\n\n\nHAMILTON, ON, Aug. 17 /CNW/ - Dofasco Inc. today announced that it has\nsigned an agreement to acquire certain assets currently owned by Copperweld\nHolding Company of Pittsburgh, Pennsylvania through a transaction with Atlas\nTube Inc. of Harrow, Ontario. These assets are used in the manufacture of\nspecialized tubular steel products suitable for niche mechanical and\nautomotive market applications.\nAtlas will acquire the shares of Copperweld Holding Company. Upon the\nclosing of this transaction, Dofasco will immediately purchase from Atlas\nassets related to Copperweld's mechanical tubing and automotive components\nbusinesses for a total consideration of $US177.8 million, subject to closing\nadjustments. These assets include manufacturing facilities in Woodstock,\nBrantford, London, Brampton and Mississauga, Ontario, as well as Shelby, Ohio\nand Elizabethtown, Kentucky. The closing of the transaction is subject to\ncustomary conditions and regulatory approvals, and is expected to occur in the\nfourth quarter of 2005.\nThe Copperweld businesses will be integrated with Dofasco's existing\ntubular steel business. Dofasco's tubular steel business, established in 1998,\nis North America's largest supplier of large diameter, thin walled tube for\nhydroforming applications to the automotive industry. It is also a leading\nsupplier of non-hydroform and fabricated tubular products, with facilities in\nOntario, Ohio and Mexico.\n\"Integration of Copperweld capabilities into Dofasco's existing tube\ndivision businesses is expected to accelerate Dofasco's growth to become a\nNorth American leader in the supply of specialty tube products for both\nmechanical and automotive customers\", said Don Pether, President and CEO of\nDofasco. \"This acquisition is a continuation of Dofasco's proven Solutions in\nSteel(TM) strategy, and Dofasco's commitment to grow by providing value-added\nsolutions to our customers. It provides an excellent opportunity to increase\nour product range in the automotive market, and to expand into non-automotive\nniche markets for tubular products, which will represent approximately 30% of\nthe shipments of the combined businesses.\"\nMr. Pether added, \"Copperweld has been a consistently profitable and\nestablished performer with excellent technical capability. It is a well-run\nprivate company with highly...