Brazil-based steel distributor Aços F. Sacchelli Ltda. has announced that it has signed an agreement to acquire 100 percent of Swiss Steel do Brasil Indústria e Comércio de Aços Ltda. (Swiss Steel Brazil), a subsidiary of Switzerland-based steelmaker Swiss Steel Group.
The completion of the transaction and Aços F. Sacchelli's takeover of Swiss Steel Brazil's operations are subject to the fulfillment of certain conditions precedent set out in the acquisition agreement. The financial terms of the transaction will not be disclosed. Swiss Steel is said to be selling its subsidiary due to weak demand in the Brazilian market.
Acquisition to combine complementary steel distribution activities
Aços F. Sacchelli, which describes itself as Brazil's largest and longest-established distributor of steels for mechanical engineering, stated that the acquisition will combine its operations in engineering and mechanical construction steels with Swiss Steel Brazil's activities in tool steels and special alloys. Swiss Steel Brazil is the country's largest distributor of tool steels.
According to Aços F. Sacchelli, the transaction is expected to expand its technical capabilities, product portfolio and logistics operations in the Latin American market. Wagner Sacchelli, chief executive officer of Aços F. Sacchelli, stated that, following the fulfillment of the conditions precedent, the combination of the two companies' respective activities will enable Aços F. Sacchelli to offer a broader range of steel products in the Brazilian market.
