London: The world’s largest steel manufacturer ArcelorMittal is selling its LaPlace and Vinton Long Carbon facilities in the US to an affiliate of the asset management firm Black Diamond Capital Management.
Financial details of the deal were however not disclosed. The deal will help the Luxembourg-based steel maker to reduce its debt that stood at $15.7 billion for the quarter ended December 2015. The company, led by Indian billionaire Lakshmi Mittal, said it has entered a “definitive transaction agreement to sell its LaPlace and Vinton Long Carbon facilities in the US to an affiliate of Black Diamond Capital Management.”
Terms of the transaction are confidential and not being disclosed, said the filing issued on Thursday. The LaPlace facility in Louisiana along with a rolling mill in Harriman (Tennessee) manufactures steel billets, flats, channels, angles and beams. The Vinton facility, located in El Paso in Texas produces rebar and grinding media.
Black Diamond manages over $8 billion in assets, across its three lines of business: control distressed/ private equity, hedge fund and CLOs and other structured vehicles. The steel giant, which continued to suffer from Chinese industry’s overcapacity, reported a decline in net sales at $63.58 billion in 2015....