A Connecticut-based private equity firm says it has reached a deal to purchase Evraz North America, the owner of the steel mill in Pueblo, from its parent, which has been under British sanction since Russia invaded Ukraine.
Atlas Holdings expects to pay $500 million for Evraz Plc’s assets in the U.S. and Canada.
The sale is welcome news to some state leaders. Eve Lieberman, the executive director of Colorado’s Colorado Office of Economic Development and International Trade, said Evraz’s nearly $1 billion investment in building a state-of-the-art long rail mill supports thousands of jobs.
“This sale marks a significant milestone for the company and a win for the economic vitality of southern Colorado, positioning Evraz North America to thrive in our state for decades to come,” Lieberman said.
Gov. Jared Polis said he is optimistic about the future for the mill. “I met with Atlas leadership and was assured that both new jobs and the expansion efforts will continue at the plant,” he said in a statement.
Evraz North America has operated independently from Evraz Plc since 2022, soon after Russia invaded Ukraine.
Evraz Plc’s largest shareholder, at 29%, is Roman Abramovich, who was accused of having close ties to Russian President Vladimir Putin and was sanctioned by the British government in March 2022. Regulators in the UK, citing the company’s importance to the Russian war effort, sanctioned Evraz in May 2022 and suspended its shares from trading in London.
Evraz’s North American assets have been for sale since August 2022.They include the Pueblo facility, which is the world’s largest solar-powered steel mill and the largest rail supplier in North America, and mills in Portland, Oregon, Regina, Saskatchewan, and Alberta, Canada, and employ about 3,400 people.
Atlas Holdings, based in Greenwich, Connecticut, specializes in the acquisition of underperforming or struggling units of larger companies. Its portfolio includes companies such as the food processor Foster Farms, paper mills, power plants and a steel bridge builder.
The Wall Street Journal reported that the transaction, expected to close later this year, has already passed U.S. anti-trust review and that UK regulators issued a license permitting the sale. Canadian regulators still must weigh in. The Journal also reported that proceeds of the sale will be withheld from Evraz Plc until sanctions are lifted.