Global industrial leader GFG Alliance has announced that it signed a binding agreement to purchase all of the outstanding stock in Keystone Inc (KCI). Under the terms of the deal, GFG Alliance company Liberty Steel USA will acquire KCI, including all its subsidiaries, for $320 million in cash less certain assumed liabilities. The purchase is expected to close on or before December 31, 2018.
“The Keystone acquisition is a core part of GFG’s Greensteel vision to become a leading US producer of high quality, cleanly produced steel,” said Sanjeev Gupta, executive chairman of Liberty and GFG Alliance.
“KCI and its businesses offer Liberty the chance to merge our existing US steel business with one of the country’s most productive wire rod operations,” said GFG North American CIO Grant Quasha.
Together, KCI and Liberty Steel Georgetown will form the core of GFG’s North American business which the company is looking to grow further with additional acquisitions in the coming months. GFG plans a diverse mix of assets for the US business, ranging from the revitalization of steel plants that had previously been taken offline, such as Georgetown, to those which are operating and performing very well, like KCI. While the current portfolio is focused on value-added long steel products, the company is actively pursuing additional acquisitions in flat products and further downstream capabilities to drive towards 5 million mt per annum of capacity by 2020.