Bekaert has reached an agreement to sell its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG for approximately US$ 73 million, with expected net proceeds of US$ 37 million. This strategic divestment aims to reduce exposure to volatile markets and strengthen the focus on high-growth sectors. The transaction is projected to close in the third quarter of 2025, subject to regulatory approvals.
Bekaert has announced its agreement to sell its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG. This transaction is valued at around US$ 73 million, and Bekaert anticipates receiving net proceeds of approximately US$ 37 million. The transaction is expected to close in the third quarter of 2025, pending regulatory approvals and customary closing conditions.
Bekaert is strategically repositioning its portfolio by minimizing exposure to commoditized and volatile markets while enhancing its presence in high-growth sectors. This divestment follows the earlier sale of its Steel Wire Solutions business in Chile and Peru in 2023, allowing Bekaert to focus on target segments and secure a sustainable future for customers and employees involved with the sold operations.
The sale encompasses production and distribution facilities within these countries, which primarily manufacture and sell steel wire products for construction, agricultural fencing, mining, and industrial uses. Specifically, the sale involves shares in BIA Alambres Costa Rica S.A. in Costa Rica, Ideal Alambrec S.A. in Ecuador, and Vicson S.A. in Venezuela, including their subsidiaries in each nation.
The affected activities generated approximately US$ 137 million in consolidated revenue for 2024. The proceeds from this transaction will further enhance Bekaert’s financial standing and support its shareholder returns and growth investment initiatives. François Desné, Divisional CEO of Bekaert’s Steel Wire Solutions business unit, emphasized the importance of this transaction in unlocking business value and aligning with their strategic objectives.
He remarked, “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. We are confident that this transition will ensure continuity for the local teams and customers under the new ownership when the sale closes.” – François Desné
In conclusion, Bekaert is strategically divesting its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela as part of its ongoing portfolio transformation. The transaction, valued at approximately US$ 73 million, is anticipated to enhance Bekaert’s financial position and allow for a greater focus on growth markets. By ensuring continuity for the entities’ employees and customers post-sale, Bekaert is reinforcing its commitment to long-term success in its core areas of operation.
Original Source: www.manilatimes.net
