Kortrijk, Belgium-based Bekaert, one of the world's largest steel cord and wire manufacturers, has announced that it has reached an agreement with the Italian tire maker Pirelli for the acquisition of Pirelli's steel cord activities for €255 million. As part of this transaction, Bekaert and Pirelli will enter into a long-term supply agreement of tire cord to Pirelli.
The acquisition agreement includes the purchase by Bekaert of Pirelli's steel cord manufacturing sites in Italy, Romania, Turkey, China and Brazil. The transaction is estimated to add approximately €300 million to Bekaert's consolidated sales on an annual basis.
The company also announced its financial results for 2013, posting a net profit of €36 million compared to a net loss of €190.5 million in the previous year.
In 2013, Bekaert's consolidated revenues decreased by 7.9 percent year on year to €3.2 billion. Low demand in domestic industrial markets, investment delays in energy and construction markets, and increased competition from Asian imports drove sales down in North America.