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JMC Steel Group completes US$100 million acquisition of Lakeside Steel

Fasken
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Overview

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Lakeside Steel

On March 30, JMC Steel Group, Inc. (“JMC”) and Lakeside Steel Inc. (TSX-V: LS) (“Lakeside”) announced the completion of Lakeside’s statutory plan of arrangement under the Business Corporations Act (Ontario). JMC has, through a wholly-owned subsidiary, acquired all of the issued and outstanding common shares of Lakeside at a price of CAD $0.2983 per share in cash. In connection with the transaction, Lakeside's senior lender assigned to JMC all of Lakeside's indebtedness under its senior credit facilities and JMC entered into a new $50 million term facility in favour of Lakeside. The total value of the deal is in excess of $150 million. Lakeside is the parent company of Lakeside Steel Corporation, Lakeside Steel Alabama Inc. and Lakeside Steel Texas Inc. Lakeside has operating facilities located in Welland, Ontario, Thomasville, Alabama, and Corpus Christi, Texas, and two processing facilities currently being constructed in Thomasville, Alabama. Lakeside is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods. Lakeside's list of customers includes large oil and gas end users as well as distributors across North America. JMC Steel Group, Inc. is the largest independent steel tubular manufacturer in North America, producing more than 2 million tons of pipe and tubular products a year. Lakeside Steel was represented in this transaction by a team from Fasken Martineau that included Sean Stevens, Krisztián Tóth, Bradley Freelan, Amira Abouali, Laura Fetter and Arun Krishnamurti (Corporate), Mitchell Thaw (Tax), Richard Johnston (Pensions), Dugan Edmison (Real Estate), Karen Sargeant (Labour and Employment) and Jeff Kauffman (Litigation).

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