The Carlyle Group will receive a settlement of $234 million from Novolipetsk Steel (NLMK) following the dispute stemming from the Russian steel producer backing out of a $3.5 billion agreement to buy portfolio company John Maneely Company (JMC).
In August last year, NLMK and DBO Holdings, Inc., the parent company of JMC, agreed to the transaction, only for the Russian company to back out of the agreement in November.
The settlement provides for the full mutual release and discharge by NLMK and DBO from their claims arising from the transaction.
NLMK will pay DBO a settlement amount of $234 million within four business days of signing, according to a statement from NLMK.
Carlyle acquired JMC in March 2006, through its $7.85 billion Carlyle IV fund. Later that year, JMC completed the add-on acquisition of steel tube manufacturer Atlas Tube from the Zekelman family, who retained a minority stake in the company. In January 2007, JMC also acquired Sharon Tube Company.
Earlier this week, Carlyle announced the close of its first MENA fund, Carlyle MENA Partners, with $500 million in commitments. The fund will invest in various sectors, including energy, financial services, healthcare, industrial, infrastructure, technology and transportation in the MENA region.
D.C.