JSW Steel on Tuesday announced the acquisition of  three companies Jindal United Steel Corporation, Saw Pipes USA and Jindal Enterprises LLC for $900 million from Jindal Saw.
With these acquisitions, JSW would get an entry point into the booming oil and gas sector in North America, which was driving the plate and pipe demand. JSW Steel would acquire 90 per cent equity at the approved enterprise valuation and the balance 10 per cent would be retained by some of the existing shareholders.
VC & MD, JSW Steel, Sajjan Jindal said the acquisition price of $900 million works out to 6.25 times of the  EBIDTA for 2006-07 and is comparable with the transaction EBIDTA multiple of 4.7 to 14.8 times for similar transaction in the steel industry globally. 
The funding required for completing this acquisition would be $940 mn which would be financed by a foreign currency debt of $380 mn (recourse debt), he said.