Bekaert announced the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG for an enterprise value of approximately $73 million. The transaction is expected to close in Q3 2025, following regulatory approvals, with anticipated net proceeds of around $37 million. This divestment is part of Bekaert’s strategy to focus on more profitable markets, enhancing its competitive position.
Bekaert has announced an agreement to sell its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG. The sale values the businesses at a consolidated enterprise value of approximately $73 million, with Bekaert expecting net proceeds of around $37 million. The transaction, which requires regulatory approval, is anticipated to close in the third quarter of 2025.
This decision is part of Bekaert’s strategy to shift its business portfolio by mitigating exposure to more commoditized markets while enhancing its presence in rapidly growing segments. After divesting its Steel Wire Solutions operations in Chile and Peru in 2023, this sale marks a further step in optimizing its focus on target sectors, ensuring a sustainable future for the affected employees and customers.
The deal encompasses the production and distribution facilities of Bekaert’s Steel Wire Solutions operations in these three countries, which produce steel wire mainly for construction, agricultural fencing, mining, and industrial uses. Included in the sale are BIA Alambres Costa Rica S.A., Ideal Alambrec S.A., and Vicson S.A., along with their subsidiaries.
The activities slated for sale generated approximately $137 million in consolidated revenue for Bekaert in 2024. The proceeds will bolster Bekaert’s balance sheet and facilitate ongoing shareholder returns and growth investments.
François Desné, Bekaert’s Divisional CEO for Steel Wire Solutions, remarked on the transaction’s significance in creating value for Bekaert, reinforcing its market position while ensuring continuity for customers and staff under new ownership after the sale closes.
This strategic divestment aligns with Bekaert’s goal of refining its business operations to focus on more profitable and less volatile markets, thereby ensuring a robust future for the company and its stakeholders.
Bekaert’s sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela marks a strategic shift to prioritize competitive and profitable market segments. This transaction not only strengthens Bekaert’s balance sheet but also ensures the sustainability of operations for the local stakeholders under new ownership. As Bekaert continues to innovate its portfolio, this move aligns with its long-term vision for growth and stability.
Original Source: www.manilatimes.net
