Bekaert today announces it has reached an agreement on the sale of its Steel Wire Solutions businesses in Chile and Peru to its current partners. This transaction includes the production and distribution facilities of the steel wire solutions activities in Chile and Peru, which manufacture, sell, and distribute steel wire products primarily for construction, agricultural fencing, mining, and industrial applications. With a total enterprise value of approximately USD 350 million and resulting in net proceeds for Bekaert’s stake of USD 136 million, the transaction is expected to close in 2023.
March 01, 2023
Steel wire transformation and coatings company Bekaert has announced that it has reached an agreement with its current partners regarding the sale of its Steel Wire Solutions businesses in Chile and Peru. The transaction is expected to close in 2023, with a total enterprise value of approximately USD 350 million and resulting in net proceeds for Bekaert’s stake of USD 136 million, subject to applicable regulatory approvals and customary closing conditions.
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This transaction includes the production and distribution facilities of the steel wire solutions activities in Chile and Peru, Industrias Chilenas de Alambre-Inchalam SA in Talcahuano, Chile; and Prodalam SA in Santiago, Chile; along with their subsidiaries in Chile and Peru. These facilities manufacture, sell, and distribute steel wire products primarily for construction, agricultural fencing, mining, and industrial applications. Bekaert currently has 52% of the shares in the Chilean entities and 38% of the shares in the Peruvian entities, but the transaction excludes Bekaert’s wholly owned Bridon-Bekaert ropes entities in Chile and Peru.
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While their partnership has been successful for nearly 75 years, Bekaert believes it is time to exit these businesses and focus on their target segments, while securing a long-term future for the customers and employees of the divested entities. The activities subject to the transaction generated approximately USD 702.82 million in consolidated revenue in 2022, with a profit margin below the Bekaert target range. Oswald Schmid, CEO of Bekaert, commented, “We are thankful to the partners, employees, and customers for the successes we have achieved together, and we wish them a bright future under the new ownership. At the same time, it is another important strategic step in the ongoing transformation of Bekaert and its further positioning in new, fast-growing markets.”
