Click here for printer friendly page
Carlyle to sell steel tube business JMC for $3.53bn13/08/2008. Source: AltAssets. 
 A shareholder group including The Carlyle Group and the Zekelman family has agreed to sell US steel pipe and tube manufacturer John Maneely Company to Russian steel producer Novolipetsk Steel, for $3.53bn.
Carlyle acquired the company in March 2006, through its $7.85bn Carlyle IV fund. Later that year JMC completed the add-on acquisition of steel tube manufacturer Atlas Tube from the Zekelman family, who retained a minority stake in the company. In January 2007, JMC also acquired Sharon Tube Company.
JMC operates 11 plants in the US and one in Canada, and employs 2,100 people. The company has estimated sales in 2008 of $3bn, according to a statement.
Daniel A Pryor, managing director on the Carlyle industrial team, said, 'In the face of intense global competition, JMC's remarkable management team and work force have built the premier global steel pipe and tube manufacturer. They have created economies of scale through two strategic acquisitions, improved operations with lean manufacturing and six sigma techniques, and grown sales through an intense focus on customer service. At many plants, the workforce has shared the benefits of this transformation via gainsharing programmes. This is a great example of how private equity can help create value.'
Last month, Carlyle agreed to sell US transformer company Kuhlman Electric Corporation to ABB, for an undisclosed amount.
Copyright © 2008 AltAssets
|
