Allegheny Technologies Incorporated (ATI) has signed an agreement with Arcelor and J&L Specialty Steel LLC, under which a wholly owned ATI subsidiary will acquire substantially all of the assets of J&L. The transaction, which is targeted for closing on 3 May 2004, is conditioned upon completion of due diligence, the successful negotiation of new collective bargaining agreements with the United Steelworkers of America (USWA) at both ATI Allegheny Ludlum and J&L Specialty Steel, approval by ATI’s secured lenders, and customary regulatory approvals. “This transaction provides an opportunity to accelerate the return to profitability of our flat-rolled stainless steel business,” said Pat Hassey, Allegheny Technologies President and Chief Executive Officer. “The economics of the transaction are attractive. The combination and integration of the J&L Specialty Steel operations with our Allegheny Ludlum operations should improve our overall competitive position and create opportunities for growth, cost savings and operating synergies. In addition, this industry consolidation improves customer service by maintaining J&L’s capacity in the U.S. stainless steel market.
