Bekaert to Acquire 100% Ownership of Turkey’s Beksa

Multinational manufacturer of tyre reinforcement and other materials, NV Bekaert SA, has announced its upcoming acquisition of the 50 per cent share in Turkish steel cord and metal fibre manufacturer Beksa Celik Kord Sanayi ve Ticaret A.S that it currently holds jointly with Turkish conglomerate Haci Ömer Sabanci Holding A.S. The two companies have signed a letter of intent for the transfer of shares, a transaction estimated to be worth 40.3 million euros, and when the deal is complete Bekaert will assume full ownership of Beksa. The transfer of shares will be executed after receiving approvals from the respective authorities, Bekaert reports.

Located in the city of Izmit, Beksa manufactures steel cord products and Dramix metal fibres for a variety of industrial applications, including the tyre and automotive industry. The company employs about 330 people and recorded sales of 80 million euros in 2006.

Marc Vandecasteele, Group Executive Vice President of Bekaert, stated: “This agreement allows us to fully integrate Beksa in Bekaert’s global manufacturing portfolio. Beksa will be further developed both as a key supplier to the growing domestic tyre market and as an export base. Along with our local management we will pursue our business strategy to deliver high quality products to our customers. We will also maintain the good relationships we have built up with Sabanci throughout the years.”

Turgut Uzer, President Tire, Tire Reinforcement Materials & Automotive of Sabanci Holding, commented: “With the increasing internationalisation of Beksa’s client portfolio Sabanci had become less aligned with the long-term strategy for the company. We have come to a good agreement with our longstanding partner Bekaert on the sale of our share in Beksa. We thank them for twenty years of excellent collaboration in the joint venture and wish them a successful continuation of the business.”