Belgium-based steel cord and wire manufacturer Bekaert SA has announced the signing of a letter of intent with Turkey-based Haci Omer Sabanci Holding AS for the acquisition of a 50 percent stake in Beksa Celik Kord Sanayi ve Ticaret. With this acquisition, which is estimated at €40.3 million ($58.94 million), Bekaert will acquire full ownership of Beksa, in which it already has a 50 percent stake.
The transaction is subject to approvals from the relevant authorities.
Located in Izmit, Beksa manufactures steel cord products and Dramix® metal fibers for a variety of industrial applications, amongst others in the automotive and building industry. Beksa employs about 330 people and recorded sales worth €80 million in 2006.
Commenting on the acquisition, Marc Vandecasteele, group executive vice president of Bekaert, said that Beksa will be further developed both as a key supplier to the growing domestic tire market and as an export base.