With plants in Regina, Calgary and Red Deer, IPSCO Canada is a leading North American producer of steel plates, as well as pipes for the oil and gas industry.
"This deal will increase our exposure to the attractive energy and infrastructure sectors throughout the region. We expect substantial synergies from the combination of IPSCO Canada and Evraz's existing North American operations," said Alexander Frolov, Evraz's chairman and CEO.
Evraz said in a news release that under the deal, Evraz will acquire the IPSCO Tubulars business from Sweden's SSAB for $4.025 billion. Evraz has also entered into definitive back-to-back agreements with TMK, a leading Russian pipe company, and its subsidiaries to sell on some of the U.S. acquisitions for $1.7 billion.
This purchase is yet another step in the implementation of Evraz's expansion strategy to build a strong platform in the steel plate and pipeline market in North America.
Evraz, a leading vertically integrated mining company, comprises three major steel mills and several mining and coal-producing assets in Russia. It produces more than 20% of the world's primary vanadium products.
The group owns the Portland-based company Oregon Steel Mills, which it bought for $2.3 billion last year making it one of the largest purchases in the United States by a Russian company.
