Bekaert has announced the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG for approximately US$ 73 million. The sale will provide Bekaert with about US$ 37 million in net proceeds and is anticipated to close in the third quarter of 2025, pending regulatory approvals. This decision aligns with Bekaert’s ongoing strategy to streamline its portfolio and focus on more profitable markets.
Bekaert has announced its decision to sell its Steel Wire Solutions businesses located in Costa Rica, Ecuador, and Venezuela to Grupo AG. This sale, valued at approximately US$ 73 million, is predicted to yield around US$ 37 million in net proceeds for Bekaert. The transaction is anticipated to finalize in the third quarter of 2025, pending regulatory approvals and standard closure conditions.
The rationale behind this strategic move is Bekaert’s objective to refine its portfolio by minimizing exposure to volatile and commoditized markets. By divesting these operations, Bekaert aims to reinforce its focus on lucrative and growing markets that promise higher profit margins and returns on capital. Following the sale of similar operations in Chile and Peru in 2023, this action reflects Bekaert’s ongoing transformation strategy.
Included in the transaction are the production and distribution facilities of the Steel Wire Solutions operations across the three countries. These facilities are integral to manufacturing and selling steel wire products used in construction, agricultural fencing, mining, and industrial applications. Specifically, Bekaert will divest shares in BIA Alambres Costa Rica S.A., Ideal Alambrec S.A., and Vicson S.A., along with their respective subsidiaries.
The units involved in this transaction reported consolidated revenues of about US$ 137 million in 2024. The proceeds from the sale are expected to bolster Bekaert’s financial standing, contributing to shareholder returns and supporting investment strategies aimed at growth.
François Desné, Divisional CEO of Bekaert’s Steel Wire Solutions business unit, stated, “The proposed transaction unlocks the value of these businesses for Bekaert. It marks another significant milestone in our portfolio transformation… However, over time the characteristics of the markets in these three countries no longer align with our strategy.”
In summary, this transaction marks a crucial step in Bekaert’s strategy to optimize its business portfolio by focusing on more profitable segments and leaving behind markets that do not align with its long-term goals. It is designed to secure the future for local employees and customers while enhancing Bekaert’s competitive position in the global market.
In conclusion, Bekaert’s strategic sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG reflects its commitment to portfolio optimization. This transaction not only aims to strengthen the company’s market presence but also ensures continuity for local stakeholders. With a focus on higher profitability, Bekaert is poised to enhance shareholder value and invest in growth opportunities going forward.
Original Source: www.manilatimes.net
