Bekaert to Sell Steel Wire Solutions Businesses in Latin America to Grupo AG

Bekaert has announced the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG for approximately USD 73 million. The deal is expected to be finalized by Q3 2025, following regulatory approvals. This move is a part of Bekaert’s strategy to shift focus to more profitable markets, following similar divestments in the past year.

Bekaert has formally announced an agreement to sell its Steel Wire Solutions businesses located in Costa Rica, Ecuador, and Venezuela to Grupo AG. This transaction values the underlying entities at approximately USD 73 million, with Bekaert expected to receive net proceeds of about USD 37 million. The completion of the sale, pending regulatory approvals, is anticipated in the third quarter of 2025.

This strategic move is part of Bekaert’s ongoing efforts to refine its business portfolio by minimizing exposure to markets characterized by commodity volatility and by increasing investment in more lucrative sectors. Following the divestment in Chile and Peru earlier this year, this latest exit will further focus Bekaert’s efforts on target segments and ensure a sustainable future for both customers and employees of the transitioned businesses.

The sale encompasses all production and distribution assets related to the Steel Wire Solutions sector in each of the three countries, which primarily supply steel wire for construction, agricultural fencing, mining, and industrial uses. Specifically, the transaction involves transferring Bekaert’s shares in BIA Alambres Costa Rica S.A., Ideal Alambrec S.A., and Vicson S.A., along with their respective subsidiaries.

In 2024, the divested businesses reported consolidated revenues of roughly USD 137 million. The proceeds from this transaction will bolster Bekaert’s financial position and reinforce its dedication to shareholder returns and growth investment initiatives.

François Desné, the Divisional CEO of Bekaert’s Steel Wire Solutions unit, stated, “The proposed transaction unlocks the value of these businesses for Bekaert. It marks another significant milestone in our portfolio transformation, further strengthening the Steel Wire Solutions business with a more competitive and resilient market position.” He noted that while Bekaert has collaborated successfully with partners in the region, current market conditions no longer align with the company’s strategic goals, thereby necessitating this transition.

In summary, Bekaert’s decision to divest its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela signifies a strategic pivot towards more profitable markets. The expected financial benefits from this sale, along with the continued focus on core segments, underscore Bekaert’s commitment to enhancing shareholder value and operational efficiency. The CEO’s statements highlight the importance of this transition for securing future stability in the region.

Original Source: www.manilatimes.net