Stelco to Invest Further in the Hamilton Community by Acquiring 40% of Hamilton Sports Group, Owner of the Tiger-Cats Football Team and Forge FC
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Transaction highlights include:
- Stelco to partner with existing, highly experienced management team of Hamilton Sports Group
- One of the most storied franchises in all of Canadian professional sports, the Hamilton Tiger-Cats have won eight Grey Cup titles since 1950
- Hamilton Forge FC are a two-time winner of the Canadian Premier League title and enjoy a rapidly growing fan base
HAMILTON, ON, Jan. 2, 2022 /CNW/ - Stelco Holdings Inc. (TSX: STLC) ("Stelco" or the "Company") announced today that it has executed agreements with the current owners of Hamilton Sports Group ("HSG") for the purchase of a 40% equity interest in the entities that own the Hamilton Tiger Cats and Hamilton's Forge FC, as well as the master lease of Tim Hortons Field, a modern 23,000 seat multipurpose stadium located centrally in Hamilton. The existing ownership group will retain majority ownership of HSG and continue to manage the teams, both of which have enjoyed much recent success. The Tiger-Cats hosted and played in the Canadian Football League's 108th Grey Cup championship last month – the team's second consecutive appearance in the league final. The Forge FC are one of seven inaugural teams in the Canadian Premier League, winning back-to-back titles in 2019 and 2020 and will compete is the 2022 CONCACAF Champions League. The playing surface at Tim Hortons Field received FIFA approval and has previously hosted 32 international matches during the Pan Am Games and will host an upcoming FIFA World Cup qualification match between Canada and the United States. Other notable events scheduled at Tim Hortons Field include the Buffalo Sabres hosting the Toronto Maple Leafs in the NHL's 2022 Heritage Classic in March of this year, and the 110th Grey Cup which will be hosted by the Tiger-Cats in 2023.
The transaction is subject to certain conditions and is expected to close in the first quarter of 2022.
Stelco Executive Chairman and Chief Executive Officer, Alan Kestenbaum said: "Stelco remains committed to the city of Hamilton, the province of Ontario and the country of Canada by providing excellent career opportunities to its employees in the Hamilton area and by continually giving back to the community. In continuance of those values, Stelco is thrilled to partner with Hamilton Sports Group and the entire Tiger-Cats and Forge FC organizations. They put a tremendous product on the field in both sports, and represent Hamilton proudly, much like Stelco. Since arriving at Stelco in 2017, I have continued to be amazed at the spirit shown by the local community and have experienced firsthand the rabid local support for the Tiger-Cats. This is an overdue union of two Hamilton icons, with Stelco's 110+ year history in Hamilton and the Tiger-Cats' own history in the city dating back over 150 years. We are excited by the growth prospects of both teams and their respective leagues as new media opportunities continue to be embraced and live sports content remains the preeminent source of entertainment globally."
Kestenbaum continued, "As part of this partnership Stelco together with both the Ti-Cats and the Forge FC intend to develop a community engagement program focused on youth throughout Hamilton and surrounding communities to increase health and wellness by involving the highest caliber talent available in both football and soccer with our youth."
About Stelco
Stelco is a low cost, integrated and independent steelmaker with one of the newest and most technologically advanced integrated steelmaking facilities in North America. Stelco produces flat-rolled value-added steels, including premium-quality coated, cold-rolled and hot-rolled sheet products, as well as pig iron and metallurgical coke. With first-rate gauge, crown, and shape control, as well as uniform through-coil mechanical properties, our steel products are supplied to customers in the construction, automotive, energy, appliance, and pipe and tube industries across Canada and the United States as well as to a variety of steel service centres, which are distributors of steel products. At Stelco, we understand the importance of our business reflecting the communities we serve and are committed to diversity and inclusion as a core part of our workplace culture, in part, through active participation in the BlackNorth Initiative.
Forward-Looking Information
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Undue reliance should not be placed on forward-looking information. The forward-looking information in this press release is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions in respect of: the utilization of and access to our production capacity; capital expenditures associated with accessing such production capacity; the impact of COVID-19 on our business and the broader market in which we operate; the market's ability to recover from COVID-19; upgrades to our facilities and equipment; our research and development activities associated with advanced steel grades; our ability to source raw materials and other inputs; our ability to supply to new customers and markets; our ability to effectively manage costs; our ability to attract and retain key personnel and skilled labour; our ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; changes in laws, rules, and regulations, including international trade regulations; and growth in steel markets and industry trends are material factors made in preparing the forward-looking information and management's expectations contained in this press release.
SOURCE Stelco
For investor enquiries: Paul D. Scherzer, Chief Financial Officer, (905) 577-4432, [email protected]; For media enquiries: Trevor Harris, Vice-President, Corporate Affairs, (905) 577-4447, [email protected]
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