Russian company to buy Wheatland Tube parent

The sale is expected to close this year’s fourth quarter.

STAFF REPORT

WHEATLAND, Pa. — A Russian company will buy the parent company of Wheatland Tube, the Wheatland plant confirmed Thursday.

Novolipetsk Steel, a leading Russian steel producer, has signed an agreement to acquire U.S. steel pipe and tube manufacturer John Maneely Co. from a shareholder group that includes The Carlyle Group, a private equity firm and the Zekelman family.

Novolipetsk, with headquarters in Lipetsk, Russia, will acquire JMC for $3.53 billion.

The transaction is subject to regulatory approvals and is expected to close in the fourth quarter of this year.

JMC, with headquarters in Beachwood, Ohio, operates 11 plants in five U.S. states and Canada.

Novolipetsk, through a joint venture with Duferco Group, has two manufacturing plants in the United States — Duferco Farrell Corp. and Sharon Coating, LLC.

Duferco Farrell is already the key supplier of hot rolled coils to JMC, in particular to the Wheatland plant, to which it is closely located, the company said.

“We are delighted to have secured an entry into the highly attractive U.S. pipe and tube market,” said Vladimir Lisin, Novolipetsk chairman.

“We are proud to become part of the NLMK [Novolipetsk] steel family and believe the future is bright for the company and its dedicated employees,” said Barry Zekelman, JMC chief executive officer.

Tom Conway, international vice president of the United Steelworkers union, said: “We look forward to working with the new owners.”