Irving, Texas-based steelmaker Commercial Metals Company has announced that its Swiss subsidiary, Commericial Metals International AG, has signed a definitive agreement to acquire Croatian pipe maker Valjaonica Cijevi Sisak (Sisak).
Sisak is an EAF-based pipe manufacturer with an annual capacity of 305,000 metric tons.
CMC will pay approximately US$7 million for the company, assume debts of over US$41 million, and invest US$40 million in capital expenditures and increase working capital by US$39 million.
The purchase agreement is subject to closing conditions, which are expected to be satisfied within the next sixty days.
President of CMC's Marketing and Distribution segment, Hans Zoellner, stated: "Sisak will be our base for growth in the robust and key markets of Central and Eastern Europe . . . Our commitment to our new employees, our expected capital improvements, our environmental investments, and our community involvement will demonstrate to the Sisak area that our interests are long term and mutual to all our important constituencies."