Bekaert has announced an agreement to sell its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG, valued at approximately US$ 73 million. The transaction is expected to close in Q3 2025 and aims to strengthen Bekaert’s focus on more lucrative markets while ensuring stability for stakeholders. This move is part of Bekaert’s ongoing strategy to refine its business portfolio for better returns.
Bekaert has officially announced the agreement to sell its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG. This sale is valued at a consolidated enterprise value of approximately US$ 73 million and is anticipated to yield net proceeds of about US$ 37 million for Bekaert. The transaction is projected to finalize in the third quarter of 2025, pending necessary regulatory approvals and standard closing conditions.
The rationale behind this divestment is rooted in Bekaert’s strategic vision of refining its business portfolio. The group aims to lessen its involvement in commoditized and volatile markets, while enhancing its foothold in lucrative markets known for higher profit margins and capital returns. This move follows the earlier divestment of its Steel Wire Solutions segment in Chile and Peru, further streamlining Bekaert’s focus towards specific target segments while providing a stable future for customers and employees in the departing regions.
The sale encompasses all production and distribution operations of the Steel Wire Solutions businesses across the mentioned countries. These facilities primarily manufacture and distribute steel wire products used in construction, agricultural fencing, mining, and various industrial applications. The agreement includes the sale of shares in BIA Alambres Costa Rica S.A., Ideal Alambrec S.A., and Vicson S.A., along with their respective subsidiaries.
Financially, the business activities being sold generated approximately US$ 137 million in earnings for Bekaert in the previous year. The expected sale proceeds are set to enhance Bekaert’s balance sheet, reinforcing its commitment to shareholder returns along with ongoing investment initiatives for future growth.
In summary, Bekaert’s divestment of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG highlights a strategic shift towards focusing on more profitable markets. This decision not only aims to secure a beneficial future for its stakeholders but also strengthens the company’s financial position. Bekaert remains committed to achieving higher returns through strategic portfolio management as it navigates market dynamics.
Original Source: www.manilatimes.net
