OAO Severstal Reached Agreement to Acquire WCI Steel (WCIS)
OAO Severstal has reached a binding agreement to purchase WCI Steel (OTC: WCIS), a company in the production of value-added steel products based in Warren, Ohio.
According to the terms of the agreement, Severstal will acquire all outstanding equity of WCI for a total cash consideration of US$140 million, implying an enterprise value of US$327 million based on outstanding net debt as of April 30, 2008. The transaction is expected to be immediately accretive to earnings.[SM]
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