Cleveland-Cliffs Inc. completed the acquisition of Ferrous Processing and Trading Company from Soave Enterprises, LLC.
November 17, 2021
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Cleveland-Cliffs Inc. (NYSE:CLF) entered into a definitive agreement to acquire Ferrous Processing and Trading Company from Soave Enterprises, LLC for an enterprise value of approximately $780 million on October 8, 2021. Cleveland-Cliffs will pay the consideration in cash, on a cash-free, debt-free basis, subject to customary adjustment. In the trailing twelve months ended August 31, 2021, FPT generated EBITDA of approximately $100 million. The transaction is subject to the receipt of regulatory approval and the satisfaction of other customary closing conditions. The acquisition has been approved by the Board of Directors of Cleveland-Cliffs and is expected to close in the fourth quarter of 2021. James Dougherty, Tricia Eschbach-Hall and Benjamin Stulberg of Jones Day advised Cleveland-Cliffs Inc. in the transaction.
Cleveland-Cliffs Inc. (NYSE:CLF) completed the acquisition of Ferrous Processing and Trading Company from Soave Enterprises, LLC on November 18, 2021. FPT is now a wholly owned subsidiary of Cleveland-Cliffs Inc. The final necessary regulatory clearances in connection with the transaction were obtained on November 17.
Cleveland-Cliffs Inc. is a flat-rolled steel producer and engaged in manufacturing iron ore pellets in North America. The Company is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling, and tubing. It offers advanced high-strength steels (AHSS), hot-dipped galvanized, aluminized, galvalume, electrogalvanized, galvanneal, hot-rolled coil (HRC), cold-rolled coil, plate, tinplate, grain oriented electrical steel (GOES), non-oriented electrical steel (NOES), stainless steels, tool and die, stamped components, rail, slab and cast ingot. Its tubular components and tooling and stamping segments provide carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot and cold stamped steel components and complex assemblies. It serves various markets, such as automotive, infrastructure and manufacturing, steel producers, and distributors and converters.