Cleveland-Cliffs Doubles Down on Steel With $2.5B Acquisition, Expects $120M in Annual Savings
Cleveland-Cliffs Doubles Down on Steel With $2.5B Acquisition, Expects $120M in Annual Savings
The acquisition values Stelco at a multiple of 4.8x the LTM Adjusted EBITDA as of March-end. Cliffs anticipates achieving around $120 million in annual cost savings without affecting union jobs.Cleveland-Cliffs Inc. (NYSE:CLF) shares are trading lower today. The company entered into a definitive agreement to acquire Stelco Holdings Inc. (OTC:STZHF) for a total enterprise value of around $2.5 billion (CAD3.4 billion).
今天Cleveland-Cliffs Inc. (紐交所: CLF) 股票出現下跌。該公司已經與Stelco Holdings Inc. (場外交易: STZHF) 達成協議，以總企業價值約25億美元（34億加元）收購其股權。
Stelco is an integrated steelmaker consisting of two operational sites, both located in the province of Ontario. Stelco ships approximately 2.6 million net tons of flat-rolled steel annually, primarily hot-rolled steel to service center customers.
Stelco是一家一體化鍊鋼廠，由兩個實際操作場所組成，均位於安大略省。Stelco年銷量約爲260萬噸平板軋製鋼材，主要爲熱軋鋼，服務於中心客戶。
As per the deal, Stelco shareholders will receive CAD60.00 per share in cash plus 0.454 shares of Cliffs common stock per Stelco share (or CAD10.00 per share as of July 12, 2024), making a total of CAD70.00 per Stelco share.
根據協議，Stelco股東將獲得60加元現金股利加每股Cliffs普通股0.454股份（或2024年7月12日時價值每股10加元），總計每股70加元。
The acquisition values Stelco at a multiple of 4.8x the LTM Adjusted EBITDA as of March-end. Cliffs anticipates achieving around $120 million in annual cost savings without affecting union jobs.
根據此次收購交易，Stelco價值爲截至三月底的合併調整EBITDA倍數爲4.8倍。Cliffs期望年實現約1.2億美元成本節省，而不影響工會職位。
The transaction is expected to immediately boost CLF's EPS for 2024 and 2025, with pro forma net leverage standing at 2.4x the LTM Adjusted EBITDA as of March-end.
此次交易預計立即提高CLF 2024年和2025年的每股收益，合併後的淨槓桿率截至三月底的合併調整EBITDA爲2.4倍。
The transaction has been approved unanimously by both Cliffs' and Stelco's boards and is expected to close in the fourth quarter of 2024, subject to shareholder and regulatory approvals and other customary closing conditions.
交易已經得到Cliffs和Stelco兩家董事會的一致批准，預計將於2024年第四季度完成，需獲股東和監管機構批准和其他慣例的最終條件。
Post-transaction closure, Cliffs shareholders will hold about 95% and Stelco shareholders approximately 5% of the combined company on a fully diluted basis.
交易完成後，Cliffs股東將佔合併後的公司的大約95％，Stelco股東將佔大約5％的總稀釋基礎。
Cliffs' acquisition of Stelco expands its steelmaking footprint and doubles its exposure to the flat-rolled spot market, leveraging cost advantages in raw materials, energy, healthcare, and currency.
Cliffs的收購擴大了其鋼鐵生產基礎，並將平板軋製鋼材的市場佔有率增至兩倍，利用原材料、能源、醫療保健和貨幣方面的成本優勢。
This acquisition integrates 1,800 United Steelworkers (USW) union employees into Cliffs' workforce.
這項收購將1,800名美國鋼鐵工人工會（United Steelworkers (USW) union）員工併入Cliffs公司。
Lourenco Goncalves, Chairman of the Board, President, and CEO of Cliffs, stated, "The enterprise value of this transaction is significantly lower than the cost of building an equivalent replacement mill in the United States, and the cost structure is lower than what a new U.S. mill would provide us."
Cliffs的董事會主席、總裁兼首席執行官Lourenco Goncalves表示：“此次交易的企業價值遠低於在美國新建立一個同等規模的廠的成本，其成本結構也低於美國的新建廠所能提供的價值。”
Cleveland-Cliff's total liquidity stood at $4 billion as of March-end.
截至三月底，Cleveland-Cliff的總流動性爲40億美元。
Investors can gain exposure to the stock via SPDR S&P Metals & Mining ETF (NYSE:XME) and First Trust Materials AlphaDEX Fund (NYSE:FXZ).
投資者可以通過SPDR S&P 金屬和礦業 ETF (紐交所: XME) 和first trust materials alphadex fund (紐交所: FXZ) 獲取該股票。
Price Action: CLF shares are down 2.41% at $15.78 premarket at the last check Monday.
最近一次檢查顯示，CLF股價每股爲15.78美元，在週一盤前下跌了2.41％。
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譯文內容由第三人軟體翻譯。
