Investor Presentaiton
Development Plans > JMC acquisition
Acquisition of John Maneely Co (JMC)
Corporate headquarters
Atlas division
Wheatland division
Duferco Farrell
JMC
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Agreement to acquire 100% in JMC for USD3.53 on a cash/debt
free basis. The deal to be closed in Q4 2008.
Attractive valuation of 6.6x EV/Ebitda
A leading pipe manufacturer with 3.0 m tpa capacity with a
diversified portfolio of value-added products and modern facilities
Financial performance:
o Revenue: USD2.4 m* and Ebitda: USD USD485 m* Last 12M
as of 06.2008
Rationale
。 Enhances vertical integration of US assets and
。 Strengthens positions in USA and diversifies product portfolio
Synergistic effect
o of c. USD35 m per year coming from...
。 better working capital management at JMC and improved
production efficiency at Duferco Farrell
Source of finance of the deal:
。 Syndicated loan of USD1.6 bn (Libor +1.2%) and USD2.0 bn
bridge facility
Positively accepted by leading credit rating agencies and
investment community
S&P reaffirmed BBB- NLMK being the only Russian steel
company with investment grade rating
* Last 12 months ending of June 2008
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