Lakeside Steel CEO steps down after $57.8 million takeover
One of Canada’s last remaining publicly traded steel companies has been acquired by U.S. steelmaker.
Lakeside Steel Inc.
WELLAND—Vic Alboini is stepping down as CEO and chairman of pipe and tube maker Lakeside Steel Inc. as the Welland, Ont.-based company heads towards a $57.8-million takeover by Chicago-based steelmaker JMC Steel Group Inc.
He will remain on the board of Lakeside Steel, but independent director Norman Findlay will take over as interim chairman, the company said.
Current president and chief operating officer Ron Bedard will serve as chief executive officer.
Lakeside announced last week that it had agreed to be acquired by JMC for 29.8 cents per share, a more than 300 per cent premium-per-share.
JMC, which already has some locations in Canada, makes tubular steel products.
The deal comes as a number of energy companies seek approval to build vast pipeline networks to transport oil and gas from the oilsands.
Lakeside had been one of the few remaining publicly-traded Canadian-owned steelmakers. It has recently set up factories in the southern U.S. where labour costs are cheaper and many customers are located.
JMC has also agreed to provide Lakeside with a secured loan of up to US$50 million.