- Gerdau's special steel operation in Spain serves primarily the automotive industry.
- The divestment will allow Gerdau to focus on more profitable companies.
Gerdau announced today the execution of a definitive agreement to sell its specialty steel producer in Spain to Clerbil SL, an investment group with international experience formed by local executives of the Company and led by the current CEO of the operation, José Jainaga.
The transaction value is € 155 million, with the possibility of receiving up to another € 45 million by the end of five years, depending on future business performance.
"Faced with the global challenges of the steel industry, we are seeking to generate more market value and increase the competitiveness of our operations, keeping debt levels under control. In this context, the sale in Spain will allow Gerdau to focus on its more profitable businesses. I would like to thank our local team's commitment to face the challenging time that is being experienced across the world steel market," said the CEO of Gerdau, André B. Gerdau Johannpeter.
"We understand Gerdau's decision to focus on more profitable markets and take this opportunity to thank them for their commitment of more than ten years to the special steel operation in Spain. It was a period of intense work that enabled us to expand our knowledge of the special steel business," said the CEO of Clerbil SL, José Jainaga.
The company, which will operate again under the brand Sidenor, has factories in the Basque Country, Cantabria and Cataluña and commercial offices in Germany, France, Italy and the United Kingdom. The company's installed capacity is one million tonnes per year and provides special steels for various sectors of the economy, especially the automotive industry. In addition, the company owns one of the largest centers of research and development in Europe, which is considered a reference in the development of new steel production technologies. Sidenor and Gerdau will continue collaborating on the development of new products, particularly steel applications for the automotive industry.
The transaction is expected to be completed by July, subject to analysis by the competition authorities in Spain.
Gerdau is a leading producer of long steel in the Americas and one of the largest suppliers of special steel in the world. In Brazil, it also produces flat steel and iron ore, activities that are expanding its product mix and boosting its competitiveness. It is also the largest recycler in Latin America and around the world it transforms each year millions of tons of scrap into steel, reinforcing its commitment to sustainable development in the regions where it operates. Gerdau's shares are listed on the São Paulo, New York and Madrid stock exchanges.