Bekaert and Almasa have reached an agreement on the merger of Proalco SAS (subsidiary of Bekaert) with the steel wire activities of Almasa SA, both located in Colombia.
The partnership intends to create value by combining expertise and resources in offering existing and new steel wire products and solutions to the market. With manufacturing activities in the center and on the Atlantic coast of Colombia, the merger will promote employment, enable export opportunities and facilitate the supply of upholstery steel wire for Bekaert’s recently established mattress spring systems joint venture, Agro-Bekaert Colombia SAS, located in Malambo, Atlantico.
Bekaert Ideal Holding (in which Bekaert holds 80% of the shares) and Almasa SA would each hold 50% in Proalco SAS after the merger. The transaction is subject to customary closing conditions including regulatory approvals and is expected to close before year-end 2020. It will add approximately € 20 million in annual revenue to Proalco SAS, which generated € 65 million in revenue in 2019.