MOSCOW (AP) -- Russian steelmaker Novolipetsk Steel has signed an agreement to expand its presence in the U.S. by buying U.S. steel pipe and tube manufacturer John Maneely Company from a shareholder group including private equity firm Carlyle Group for $3.53 billion, Novolipetsk said in a statement Wednesday.
The Beechwood, Ohio-headquartered John Maneely Company, or JMC, is the largest independent maker of tubular steel in North America and has estimated 2008 sales of around $3 billion, Novolipetsk said.
The deal is subject to regulatory approval and expected to close in the fourth quarter of 2008.
JMC operates 11 plants in five U.S. states and in Canada. Novolipetsk is buying it on a debt-free, cash basis from Carlyle and the Zekelman family, using existing bank financing commitments, it said.
"We are delighted to have secured an entry into the highly attractive U.S. pipe and tube market," said Novolipetsk chairman, billionaire Vladimir Lisin. Novolipetsk already operates two manufacturing facilities in the United States through its joint venture with Duferco Group.
