U.S. Steel acquires Lone Star Technologies in $2.1 billion deal

By Lisa Kerner

Charlotte, N.C., June 14 - Lone Star Technologies, Inc.'s shareholders approved the $67.50-per-share acquisition of the company by United States Steel Corp., finalizing a deal first announced on March 29.

The transaction was approved by holders of more than 73% of the shares outstanding and by holders of more than 99% of the shares voting on the proposal, according to a company news release.

As a result, Lone Star's shares ceased trading on the New York Stock Exchange at the close of business on June 14.

"This acquisition significantly expands our tubular product offerings, our production capacity and our geographic footprint," U.S. Steel chairman and chief executive officer John P. Surma said in the release.

U.S. Steel plans to combine Lone Star with its tubular division under the direction of former Lone Star president and chief operating officer Joseph Alvarado, now vice president of U.S. Steel's tubular operations.

The $2.1 billion total purchase price was financed by U.S. Steel through cash on hand and financing under its existing receivables program, new bank facilities and a portion of the proceeds of its recent offering of $1.1 billion in senior unsecured notes, the release stated.

Dallas-based Lone Star manufactures steel tubular products used in oil gas wells. U.S. Steel is an integrated steel producer based in Pittsburgh.

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