A Connecticut private equity firm has agreed to purchase a Chicago-based steel manufacturer.
Greenwich-based Atlas Holdings announced Monday that it has signed a definitive agreement to acquire EVRAZ Inc. NA, EVRAZ Inc. NA Canada and their respective subsidiaries, which together are called EVRAZ North America.
Atlas said it agreed to pay up to $500 million for EVRAZ North America, with most of the money deferred pending the performance of the business, the Wall Street Journal reported.
Atlas, which was founded in 2002, has more than 57,000 employees at more than 350 facilities worldwide. It is headquartered at 100 Northfield St., in Greenwich.
EVRAZ North America is a producer of engineered steel products in the United States and Canada for rail, energy, infrastructure and industrial end markets. It operates facilities in Pueblo, Colorado; Portland, Oregon; Regina, Saskatchewan, in Canada; and across Alberta, Canada.
The closing of the sale is expected to take place in the second half of 2025, and is subject to certain closing conditions.
EVRAZ North America employs 3,400 individuals across the U.S. and Canada with steelmaking capacity of 2.3 million tons and finished steel capacity, including tubular products, of 3.5 million tons.
EVRAZ North America’s Colorado facility is the world’s largest solar-powered steel mill and the largest rail supplier in North America, Atlas said. Its Canadian operation, one of the largest energy tubulars suppliers in North America, operates two electric arc furnace steel facilities, 12 steel product mills and 17 scrap recycling facilities.
Products made at EVRAZ North America regularly contain 98% recycled scrap material, Atlas added.
“Our approach is straightforward and consistent: we invest in industrial businesses for the long term and provide the capital and leadership expertise to grow those companies and ensure success,” Atlas Partner Sam Astor said. “Despite the global dynamics of the steel market and unique challenges facing the business, the EVRAZ team has continued to drive the business forward and we want to thank them for their hard work and dedication.”
EVRAZ North America separated from its parent EVRAZ plc since the United Kingdom sanctioned EVRAZ plc in May 2022 and issued a general license permitting EVRAZ North America to continue business operations as an independent company, Atlas said.
EVRAZ plc’s largest shareholder is sanctioned Russian oligarch Roman Abramovich, the Wall Street Journal reported.
The sale clarifies the ownership and operating status of the North American unit, which has largely functioned on its own for the past three years while its parent company in the U.K. has been unable to do business.
The U.K. sanctioned him in March 2022 for having ties to Russian President Vladimir Putin and businesses that aided Russia’s war against Ukraine.
Evraz shares were suspended from trading in London, and in May 2022 the U.K. separately sanctioned EVRAZ, saying the company’s output was of vital significance to the Russian war effort. The company’s market capitalization is about $1.6 billion, the Wall Street Journal reported.
The U.K. and Canada have permitted Evraz’s North American business to operate separately from its parent company. Sale proceeds will be withheld from Evraz’s U.K. parent until sanctions are lifted, Atlas said.