Sweden-based long steelmaker Ovako Holdings AB has announced that European private equity investor Triton has concluded an agreement to acquire all shares in the companies belonging to the bar, bright bar, and tube and ring divisions of Ovako.
Ovako's announcement said that the transaction does not include Ovako Group's operations belonging to the wire division, which produces and markets long special steel products in the form of wire rod and PC strand.
The operations of the acquired companies, consisting of 12 production units mainly in Sweden and Finland and six sales offices in Europe and North America, will continue under the name Ovako. The turnover of the new Ovako is estimated at around €850 million for 2010 and the number of employees is 3,000. The steel production capacity amounts to 1.2 million mt.
The purchase price shall remain confidential. Completion of the transaction depends on approval from the competition authorities.
Ovako's president & CEO Jarmo Tonteri, who will continue in this position at the new Ovako, said, "The new owner will provide us with the financial strength we have been lacking during the financial turmoil of the last couple of years."