Sweden-based BE Group, a trading and service company for steel and other metals in Europe, has secured an agreement to acquire the Swedish metal processing group RTS in order to strengthen BE Group's production service offering to major engineering customers.
RTS maintains operations in Eskilstuna, Sweden and Rapla, Estonia, as well as a smaller-scale trading operation in Romania.
According to a BE Group release, RTS is expected to generate annual sales of about SEK 90 million ($13.9 million) and has 35 employees. The acquisition is a combined net asset and equity transaction for which the net debt effect for BE Group is expected to be SEK 20 million ($3.1 million).
BE Group is expected to take possession in February. The operations will be consolidated as of the date on which BE Group takes possession and are expected to have a positive effect on the earnings of the group's Swedish business area in 2011.
"This acquisition marks an additional step in BE Group's strategy to advance its business along the value chain. RTS further complements our production capacity, opening up a new category of assignments in the heavy engineering segment," stated Roger Johansson, president of BE Group.