Nippon Steel & Sumitomo Metal Corporation (NSSMC) has signed an agreement to acquire the Ovako Group. The acquisition is subject to regulatory approval and financial details of the transactions are presently not disclosed.
Ovako develops high-tech steel solutions in the bearing, transport and manufacturing industries. Ovako has about 3,000 employees. It produces steel bar, tube, ring and pre-components. Ovako’s sales in 2017 were EUR 921 million. As part of the deal, EUR 310 million, 5 percent senior secured noted due in 2022 will be redeemed.
Kosei Shindo, President of NSSMC stated, “Our goal with the acquisition of Ovako is to strengthen and expand our global business and further strengthen our technology, product quality, and product development capability for special steel, and securing a base of manufacture and sales in Europe, to strengthen our global special steel business.”
Triton has been the owner of Ovako for more than seven years. The Triton funds invest in over 35 medium-sized businesses headquartered in Europe, focusing on businesses in the industrial, business services and consumer sectors.
NSSMC makes a wide range of value-added steel products in more than 15 countries as well as at 12 steelworks in Japan. For the fiscal year ended March 31, 2016, NSSMC reported a consolidated crude steel production of 45 million mt.