Noble and ArcelorMittal complete merger

Noble International, Ltd., (www.nobleintl.com), completed its purchase of ArcelorMittal's Tailored Blank Arcelor (TBA) laser-welding operations. The total value of the transaction is approximately $300 million, with ArcelorMittal receiving 9.375 million shares of Noble's common stock with the balance in the form of cash, assumption of certain TBA obligations and a subordinated note. Noble's shareholders approved the transaction at the Company's annual shareholder meeting held August 30, 2007.

As part of the transaction, Noble acquired eight production facilities, including one facility in the United States, plus interests in two joint ventures in Asia. The European facilities are located in Belgium, France, Germany, Spain, Slovakia and the United Kingdom. The Company now operates 23 production facilities worldwide, which includes two joint ventures in China and one joint venture in India.

The acquisition of TBA provides customer and geographic diversification to Noble. Noble’s post-transaction customer concentration improves dramatically, with the largest customer only accounting for approximately 18 percent of total revenue. Products manufactured outside of North America will account for approximately 53 percent of Noble’s total annual revenues. The acquisition provides Noble with important new customers including Renault and Peugeot, as well as the European operations of Ford, General Motors and Volkswagen.

Noble and ArcelorMittal entered into a three year transition services agreement and a five year steel supply agreement to support the Company's European operations. Noble also has access to ArcelorMittal's automotive-related research and development efforts and the two companies intend to work together to develop new products and applications for the automotive industry.

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish