Bekaert Announces Sale of Steel Wire Solutions Businesses in Latin America
Bekaert has announced the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG, valued at approximately US$ 73 million. The transaction, expected to close in the third quarter of 2025, aims to strengthen Bekaert’s focus on more lucrative markets. The sale will also support Bekaert’s financial position and commitment to shareholder returns.
Bekaert has announced an agreement for the sale of its Steel Wire Solutions businesses located in Costa Rica, Ecuador, and Venezuela to Grupo AG. This transaction is valued at approximately US$ 73 million, and it is anticipated that Bekaert will realize net proceeds of about US$ 37 million. The completion of this transaction is projected for the third quarter of 2025 and is subject to regulatory approvals and customary closing conditions.
In recent years, Bekaert has focused on transforming its business portfolio to reduce exposure to commoditized and volatile markets while enhancing its presence in more lucrative markets. Following its divestiture of the Steel Wire Solutions segment in Chile and Peru in 2023, this sale represents a further step in that direction, allowing Bekaert to concentrate on targeted segments and ensuring a sustainable future for the employees and customers involved.
The transaction encompasses the production and distribution facilities of Bekaert’s Steel Wire Solutions entities in the three countries. Specifically, it involves the sale of shares in BIA Alambres Costa Rica S.A., Ideal Alambrec S.A., and Vicson S.A., along with their subsidiaries. These facilities primarily manufacture and sell steel wire products used in construction, agricultural fencing, mining, and various industrial applications.
Financially, the activities associated with this transaction generated approximately US$ 137 million in consolidated revenue for Bekaert in 2024. The proceeds from this sale are expected to fortify Bekaert’s balance sheet, further supporting its commitment to shareholder returns and securing investment for future growth.
François Desné, the 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, further strengthening the Steel Wire Solutions business with a more competitive and resilient market position. We have achieved numerous successes together with our longstanding partners. However, over time the characteristics of the markets in these three countries no longer align with our strategy. We are confident that this transition will ensure continuity for the local teams and customers under the new ownership when the sale closes.”
Bekaert’s sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG represents a strategic shift in its business portfolio. This decision aligns with Bekaert’s long-term goals by reducing dependence on volatile markets while focusing on more profitable segments. The transaction is expected to strengthen Bekaert’s financial foundation, ensuring continued support for shareholders and future investments in growth opportunities.
Original Source: www.manilatimes.net
