Bekaert announces the completion of the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela
On 28 February 2025, Bekaert announced it had reached an agreement on the sale of its Steel Wire Solutions businesses in Costa Rica, Ecuador, and Venezuela to Grupo AG. The sale is part of Bekaert’s strategy in recent years to transform its business portfolio by reducing the Group’s exposure to more commoditized and volatile markets, while increasing its presence in faster growing markets, which typically offer higher profit margins and higher returns on capital. The sale was subject to regulatory approvals, including competition clearance, and other closing conditions, all of which have now been satisfied and the sale completed on 30 June 2025.
Financial Impact
This transaction valued the underlying entities at a consolidated enterprise value of US$ 73 million. The proceeds from the sale will further strengthen Bekaert’s balance sheet and support its commitment to shareholder returns and investment plans for growth.
The businesses subject to the transaction generated approximately € 60 million in consolidated revenue and
€ 4 million in underlying EBIT in 2025 (between 1 January and 30 June 2025). Subject to final closing balances, the disposal is estimated to result in a profit on sale of approximately € 15 million, excluding a non-cash, cumulative translation adjustment of € -56 million from historic currency devaluations in Venezuela, as previously disclosed. After the sale, the group will generate approximately 4% of its consolidated sales in Latin America.
François Desné, Divisional CEO of Bekaert’s Steel Wire Solutions, commented: “The successful completion of this transaction marks another important milestone in the transformation of the Steel Wire Solutions portfolio. Equally, we are confident that our teams and customers in Costa Rica, Ecuador and Venezuela will thrive under the leadership of Grupo AG. We are proud of what we have achieved together in Latin America over the past years and wish our local teams and Grupo AG every success as they embark on this new chapter.”
Left to right: Rodrigo Gabriel, CEO Grupo AG and François Desné, Bekaert Divisional CEO Steel Wire Solutions
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