Outokumpu divests Long Products business to Marcegaglia

Outokumpu has signed an agreement to divest the majority of the Long Products business operations to Marcegaglia Steel Group. The total consideration on a debt and cash-free basis amounts to EUR 228M implying an EV/Adjusted 2021 EBITDA multiple of 4.9×. In the January–September 2022 interim report, Outokumpu will classify its Long Products businesses to be divested as assets held for sale, report the businesses as a discontinued operation and based on a preliminary assessment, impairment of some EUR 50M would be recognized, subject still to final review.

Outokumpu expects to complete the divestment by the end of this year. The completion of the transaction is subject to customary closing conditions and regulatory approvals by the competition authorities and requires for instance internal structuring before completion.

The transaction includes Long Products’ melting, rod and bar operations in Sheffield, UK; bar operations in Richburg, US; and wire rod mill in Fagersta, Sweden.

Outokumpu Long Products AB’s units in Degerfors and Storfors in Sweden continue their operations for now as part of the Outokumpu Group, and different options are to be evaluated for the future of the units.

Previous articleHolger Arnold joins VDM Metals Group as CTO
Next articleNippon Steel develops TranTixxii™-Eco
Stainless Steel World is part of The KCI Media Group, a group of companies focused on building and sustaining global communities in the flow control industries. We publish news on a daily basis and connect business-to-business professionals through our online communities, publications, conferences and exhibitions.