Bekaert to Exit Steel Wire Markets in Costa Rica, Ecuador, Venezuela
Deal News | Feb 28, 2025 | Globenewswire
Bekaert, a global market leader in steel wire products, has announced the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG at a consolidated enterprise value of approximately US$ 73 million. This strategic move aligns with Bekaert's ongoing transformation to reduce exposure to commoditized markets, aiming instead to focus on markets with higher growth and profitability. The transaction not only shifts Bekaert's portfolio but also aims to secure the future of the divested entities’ employees and customers. The businesses being sold include production and distribution facilities that serve the construction, agricultural, mining, and industrial sectors. Financially, these operations generated around US$ 137 million in revenue in 2024. The sale proceeds, approximately US$ 37 million for Bekaert, will bolster the company's balance sheet and support shareholder returns and future growth investments. The deal completion is slated for Q3 2025, pending regulatory approval.
Sectors
- Steel and Wire Manufacturing
- Merger and Acquisitions (M&A)
- Construction and Industrial Products
Geography
- Costa Rica – Location of part of the businesses being sold by Bekaert.
- Ecuador – Another location of Bekaert's steel wire businesses involved in the sale.
- Venezuela – A country where Bekaert's divested operations are situated.
Industry
- Steel and Wire Manufacturing – The industry is relevant because the article discusses the sale of Bekaert's steel wire solutions businesses.
- Merger and Acquisitions (M&A) – This sector is pertinent as the article focuses on the sale of Bekaert's businesses to Grupo AG, highlighting a corporate transaction.
- Construction and Industrial Products – Relevant due to the fact that Bekaert's businesses being sold manufacture products primarily for construction, agriculture, mining, and industrial applications.
Financials
- US$ 73 million – Consolidated enterprise value of the transaction.
- US$ 37 million – Net proceeds expected for Bekaert from the sale.
- US$ 137 million – Consolidated revenue generated by the businesses subject to sale in 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Bekaert | Selling Company | Company | Global market leader in steel wire products, selling businesses in Costa Rica, Ecuador, and Venezuela. |
| Grupo AG | Bidding Company | Company | Acquirer of Bekaert's Steel Wire Solutions businesses in the mentioned countries. |
| BIA Alambres Costa Rica S.A. | Target Company | Company | Part of the Bekaert’s Steel Wire Solutions businesses in Costa Rica involved in the transaction. |
| Ideal Alambrec S.A. | Target Company | Company | Bekaert’s entity in Ecuador being sold in the transaction. |
| Vicson S.A. | Target Company | Company | Part of Bekaert's divested businesses located in Venezuela. |
| Franois Desn | Divisional CEO of Bekaert's Steel Wire Solutions | People | Provided comments on the strategic rationale and benefits of the transaction. |