Please find attached a press release concerning an acquisition and long-term supply agreement with Pirelli.
Summary:
Bekaert, a worldwide technology and market leader in steel wire transformation and coatings, has reached an agreement with Pirelli for the acquisition of Pirelli's steel cord activities. As part of this transaction, Bekaert and Pirelli will enter into a long-term supply agreement of tire cord to Pirelli. Both companies aim at a smooth transition process enabling continuity of supply and service to the Pirelli tire manufacturing plants.
The integration of the steel cord activities and the long-term supply agreement will further enhance Bekaert's status as an important supplier to the tire industry.
The acquisition agreement includes the purchase by Bekaert of Pirelli's steel cord manufacturing sites in Figline Valdarno (Italy), Slatina (Romania), Izmit (Turkey), Yanzhou (China) and Sumarè (Brazil). The deal includes all of the personnel and assets of the respective entities.
The transaction is estimated to add approximately € 300 million to Bekaert's consolidated sales on an annual basis. The deal has an enterprise value of € 255 million and is subject to customary closing conditions.