Japan’s Metal One Corporation has reached an agreement to acquire the U.S. metals business from Cargill. A purchase agreement was signed Sept. 8, 2017, and the two parties expect the deal to close later this year.
The agreement includes Cargill’s U.S. metals supply chain business, which includes commercial activities based in Minneapolis and Houston, as well as eight processing facilities in seven U.S. cities: Windsor, Colorado; Panama City, Florida; Granite City, Illinois (two facilities); East Chicago, Indiana; Tulsa, Oklahoma; Loudon, Tennessee; and Houston, Texas. Metal One will establish a wholly-owned subsidiary in the U.S. to manage the new business.
The acquisition will enable Metal One to expand and diversify its operations in the United States.
“This acquisition will be a great strategic fit with our current asset base in North America,” said Shuichi Iwata, President & CEO of Metal One, based in Chiyoda-ku, Tokyo, Japan. “We will provide continuous support for the excellent customer and supplier relationships that Cargill has established in the U.S. metals market, and we look forward to leveraging the acquired business to further enhance our presence in the U.S.”
“We are pleased to find a strategic buyer in Metal One which has a focus in the ferrous industry and an intent to grow and expand in North America,” said David Dines, president of Cargill Metals & Shipping. “While no longer owning steel processing centers, Cargill will continue to be active in global ferrous markets, offering tailored physical supply and financial solutions in iron ore and steel through our business in the Asia Pacific region.”
J.P. Morgan Securities LLC acted as exclusive financial advisor to Cargill on this transaction.