Bekaert’s Colombian subsidiary, Proalco SAS, and Colombian steel wire producer Almasa plan to merge by the end of 2020, Bekaert said this week.
Both companies have reached an agreement in which Bekaert Ideal Holding and Almasa SA would each own a 50 percent stake in the merged company, Proalco SAS. Bekaert currently has an 80 percent stake at Bekaert Ideal Holding.
Bekaert said the deal is still subject to “customary closing conditions including regulatory approvals.”
“The partnership intends to create value by combining expertise and resources in offering existing and new steel wire products and solutions to the market,” Bekaert said in a statement.
The two combined businesses, which will rebrand to Proalco SAS, should reach a combined annual revenue of EUR 85 million, Bekaert estimated. Bekaert said the standalone Proalco SAS company posted revenues of EUR 65 million in the full-year 2019.
“With manufacturing activities in the center and on the Atlantic coast of Colombia, the merger will … enable export opportunities and facilitate the supply of upholstery steel wire for Bekaert’s recently established mattress spring systems joint venture, Agro-Bekaert Colombia SAS, located in Malambo, Atlantico,” Bekaert added.