Outokumpu has currently completed the divestment of the majority of its Long Products business to Marcegaglia. The transaction was carried out as a share sale, and with the transaction, melting, rod and bar operations in Sheffield, UK, bar operations in Richburg, US, and wire rod mill in Fagersta, Sweden were sold to Marcegaglia. The transaction excluded Outokumpu Long Products AB operating in Degerfors and Storfors in Sweden, which continue as a part of Outokumpu.
The total consideration of the transaction on a debt and cash-free basis was approximately EUR 228M, strengthening Outokumpu’s financial position. Cash proceeds for equity and net debt item are approximately EUR 224M of which EUR 5M paid to an escrow account. Transaction costs are estimated to be approximately EUR 7M. The consideration is subject to closing accounts that are finalized during H1 2023.
