Carlyle's $3.5bn steel deal falls through

In August, DBO Holdings Inc., the parent company of JMC, and NLMK entered into a merger agreement to sell DBO Holdings to NLMK for $3.53bn.

DBO Holdings filed a lawsuit on October 15th against NLMK in New York federal court regarding NLMK's failure to close the transaction in a timely manner, breaching the terms of the agreement.

Daniel A Pryor, Carlyle managing director and vice chairman of JMC, said, 'We are disappointed that NLMK has chosen to breach its obligations under the merger agreement. However, JMC is an exceptional company with superb employees and a proven management team. We see many opportunities to continue building and strengthening the business. It has been a privilege to work with the company over the past three years, and I look forward to continued involvement.'

JMC was formed as a result of a merger between John Maneely Company and Atlas Tube in 2006. It operates in five US states and one Canadian province, with a total production capacity of more than 3 million tons of steel pipe and tube per annum.