Bekaert has agreed to sell its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG for about US$ 73 million. The sale is expected to yield net proceeds of approximately US$ 37 million and is projected to close in the third quarter of 2025, pending necessary approvals. This move aligns with Bekaert’s strategy to sharpen its focus on more profitable markets and ensure continuity for customers and employees.
Bekaert has announced the agreement to sell its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG. This transaction is valued at approximately US$ 73 million, with expected net proceeds for Bekaert around US$ 37 million. The sale is projected to finalize in the third quarter of 2025, contingent upon regulatory approvals and customary closing conditions.
In recent years, Bekaert has aimed to reshape its business portfolio, reducing exposure to commoditized markets while focusing on faster-growing areas with higher profit margins. Following the sale of its Steel Wire Solutions business in Chile and Peru in 2023, Bekaert is now further refining its portfolio by divesting operations in Costa Rica, Ecuador, and Venezuela.
The divestment encompasses the production and distribution facilities of Bekaert’s Steel Wire Solutions operations in the aforementioned countries. The entities involved include BIA Alambres Costa Rica S.A., Ideal Alambrec S.A. in Ecuador, and Vicson S.A. in Venezuela, alongside their subsidiaries. These businesses primarily manufacture and sell steel wire products for various applications, including construction and agriculture.
The divested operations contributed nearly US$ 137 million in consolidated revenue for 2024. The proceeds from the sale aim to bolster Bekaert’s balance sheet and advance its commitment to shareholder returns, alongside supporting growth investment plans.
François Desné, Divisional CEO of Bekaert’s Steel Wire Solutions business unit commented, “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.”
Concluding, this strategic divestment not only reflects Bekaert’s focus on high-return markets but also ensures continuity for local teams and customers under new ownership. The transition aligns with Bekaert’s long-term goals and enhances its market positioning.
In summary, Bekaert’s sale of its Steel Wire Solutions businesses in Central and South America marks a significant step in its strategic portfolio restructuring. With planned net proceeds of approximately US$ 37 million and an eye towards strengthening its market focus, this transaction is instrumental in solidifying Bekaert’s future in more lucrative markets. The continuity for local operations and employees is also a key consideration in this decision.
Original Source: www.manilatimes.net
