Bekaert sells steel wire businesses in Costa Rica, Ecuador, Venezuela for $73 million

BRUSSELS: Bekaert has reached an agreement to sell its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG, the company announced today.

The transaction values the entities at approximately $73 million and is expected to yield net proceeds of about $37 million for Bekaert. The deal is slated to close in the third quarter of 2025, pending regulatory approvals and customary closing conditions.

This sale is part of Bekaert’s ongoing strategy to reduce its exposure to commoditized and volatile markets while increasing its presence in faster-growing markets with higher profit margins and returns on capital. This move follows the 2023 divestment of its Steel Wire Solutions business in Chile and Peru, furthering the company’s portfolio transformation.

The transaction includes the production and distribution facilities in Costa Rica, Ecuador, and Venezuela. These facilities produce steel wire products mainly for construction, agricultural fencing, mining, and industrial applications. Bekaert will sell its shares in BIA Alambres Costa Rica S.A., Ideal Alambrec S.A. in Ecuador, and Vicson S.A. in Venezuela, along with their subsidiaries.

The businesses generated approximately $137 million in consolidated revenue in 2024. The proceeds will bolster Bekaert’s balance sheet, supporting shareholder returns and growth investment plans.

“The proposed transaction unlocks the value of these businesses for Bekaert. It marks another significant milestone in our portfolio transformation, strengthening the Steel Wire Solutions business with a more competitive market position,” said François Desné, Divisional CEO of Bekaert’s Steel Wire Solutions. “We are confident that this transition will ensure continuity for the local teams and customers under new ownership when the sale closes.”