Bekaert, specialist in steel wire transformation and coatings, reached an agreement with Arrium for the acquisition of its wire ropes business in Newcastle, Australia. The wire ropes division of Arrium is a manufacturer of mining wire ropes with 90 years of experience. The integration of the Australian ropes activities is expected to enhance Bekaert’s growth strategy in steel wire ropes in general and enable the Group to take a leading global market position in mining ropes in particular.
Photo courtesy of NV Bekaert SA
The acquisition agreement includes the purchase of Arrium’s steel ropes business by Bekaert. The deal includes all of the personnel and assets of the business located in Newcastle, Australia. The transaction is estimated to add EUR 40M to Bekaert’s consolidated sales on an annual basis, has an enterprise value of approximately EUR 60M and is subject to customary closing conditions. Bekaert and Arrium anticipate a deal closing in the course of the first quarter of 2015.
Upon deal closure, the Australian ropes activities will be integrated in the Bekaert Rope Group. In this newly established Group, Bekaert and their Chilean partners, through Matco Cables, now hold 65% and 35% respectively of all ropes entities in Canada, Chile, Peru, Brazil and the US.
