Cargill Inc. is selling its U.S. metals business, a provider of steel sheets to the construction, energy and other industries, to a Japanese metals specialist called Metal One Corp., the companies said Monday.
Terms of the deal were not disclosed.
With it, Metal One picks up a business Wayzata-based Cargill has had for more than 40 years in which it processed the giant hot-rolled coil that comes out of steel factories into sheets and plates sized for use by industrial customers.
Cargill has eight factories around the U.S. for such work. The newest, in Windsor, Colo., provided steel products mainly for energy customers in North Dakota and elsewhere.
Cargill executives more than a year ago signaled their interest in selling key assets of the company's metals and energy operations to narrow the company's focus on agriculture and food. Cargill in March sold its petroleum trading business to Australia's Macquarie Group and in June sold its North America power and gas business to the same firm.
The latest deal does not mean that Cargill is exiting the metals industry. It still has a sizable metals trading business in Asia and provides hedging on metals and other commodities in the U.S.
"While no longer owning steel processing centers, Cargill will continue to be active in global ferrous markets, offering tailored physical supply and financial solutions in iron ore and steel through our business in the Asia Pacific region," David Dines, president of Cargill Metals & Shipping, said in a statement.
In addition to its eight processing sites around the country, Cargill's U.S. metals business has corporate offices in Minneapolis and Houston, which are expected to remain in place after the transaction closes.
