Ternium Buys Mexican Steel Manufacturer For $1.7 Billion

LUXEMBOURG - Ternium S.A. announced Monday that it will purchase Grupo Imsa S.A.B. de C.V. in Mexico for approximately $1.7 billion.

Ternium will purchase the outstanding shares of Grupo Imsa for $6.40 per share. The shares controlled by Grupo Imsa's majority shareholders, which own 90.4 percent of Grupo Imsa, will be redeemed in cash at the same price per share.

"Upon completion of this transaction, Ternium will strengthen its position in North America, where more than 60 percent of its revenues will be concentrated. The integration of Imsa will expand Ternuim's industrial capabilities in value added steel products in Mexico and in the U.S., where it will have a team of more than 13,000 highly trained and committed employees." said Paolo Rocca, Ternium's Chairman.

The transaction is expected to lose in the third quarter of 2007.

Grupo Imsa is a steel manufacturer with operations in Mexico, the U.S. and Guatemala. It has annual production capacity of 2.2 million tons of hot rolled coils, 1.8 million tons of cold rolled products and 1.7 million tons of galvanized products. Net sales for 2006 were $3.4 billion.

Ternium produces a range of flat and long steel products and has operations in Mexico, Argentia and Venezuela. It produced 9 million tons of finished steel products in 2006 and had net sales of $6.6 billion.

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