Alcoa and BHP Billiton today announced they have agreed to sell their respective equity interests in Integris Metals to Ryerson Tull for $410 million in cash. The sale includes the assumption of Integris’ debt, which was approximately $250 million as of October 1, 2004.
Alcoa and BHP Billiton each own 50% of Integris Metals, which has approximately 2400 employees. The transaction is expected to be completed by early 2005.
Integris Metals, a metals service centre company engaged in the processing and distribution of metals, was formed in November 2001 through the combination of Reynolds Aluminum Supply Company (RASCO) and North America Metals Distribution (NAMD), the metals distribution businesses of Alcoa and BHP Billiton, respectively.
The shareholders’ stated strategic intent was to create value through the combination of RASCO and NAMD and then exit the business, when appropriate, as the metals distribution business was not core to either shareholder.