The transaction, which has a total enterprise value of approximately US$350 million and generates net proceeds for Bekaert's stake of US$136 million, is expected to close in 2023, subject to applicable regulatory approvals and customary closing conditions.
The transaction covers the production and distribution facilities of the Steel Wire Solutions activities in Chile and Peru. These facilities produce, sell and distribute steel wire products primarily for construction, agricultural fencing, mining and industrial applications. Bekaert currently owns 52% of the shares in Chilean entities and 38% of the shares in Peruvian entities.
Oswald Schmid, CEO of Bekaert, said, "Bekaert is a company that entered the Latin American market early. Our partnership with the existing shareholders in Chile dates back to 1948 and was expanded in 1994 with the establishment of our partnership in Peru. We are grateful to our partners, employees and customers for the successes we have achieved together and we wish them a bright future under the new ownership. It is also an important strategic step in Bekaert's ongoing transformation and further positioning it in new, fast-growing markets.’