Bekaert acquisition of three Pirelli steelcord plants finalised

The sale of Pirelli’s tyre steelcord activities at three sites was finalised on 18 December. Bekaert is now the official owner of the Figline facility in Italy, the Slatina plant in Romania and the operation in Sumaré, Brazil, however it still awaits local regulatory approvals for the transfer of Pirelli’s steelcord facilities in Izmit, Turkey and Yanzhou, China. It is expected that these approvals could be obtained in the first quarter of 2015, however the companies can give no assurance that this timeframe will be met.

The deal for the three sites closed at an enterprise value of approximately €150 million, which is in line, on a pro-quota basis, with the overall operation’s value of approximately €255 million announced when the agreement was signed. The operation will have approximately the equivalent impact on Pirelli’s consolidated net financial position.

Bekaert says the process of integrating the three tyre cord plants into the Bekaert Group will “start immediately” and that this integration, along with the long-term supply agreement it has negotiated with Pirelli, will “further enhance Bekaert’s status as a preferred supplier to the tyre industry.”