February 18, 2009 - Bekaert to acquire full ownership of Beksa (Turkey)
NV Bekaert SA and Haci Ömer Sabanci Holding A.S. have signed a letter of intent for the acquisition by Bekaert of 50% of the shares in Beksa Celik Kord Sanayi ve Ticaret A.S (Turkey). As a result Bekaert will acquire full ownership of Beksa, in which it already has a 50% stake. The purchase price related to this transaction is estimated at € 40.3 million.
The transfer of shares will be executed after receiving approvals from the respective authorities.
Located in Izmit, Beksa manufactures steel cord products and Dramix® metal fibers for a variety of industrial applications, amongst others in the automotive and building industry. Beksa employs about 330 people and recorded € 80 million sales in 2006.
Marc Vandecasteele, Group Executive Vice President of Bekaert, stated: “This agreement allows us to fully integrate Beksa in Bekaert’s global manufacturing portfolio. Beksa will be further developed both as a key supplier to the growing domestic tire market and as an export base. Along with our local management we will pursue our business strategy to deliver high quality products to our customers. We will also maintain the good relationships we have built up with Sabanci throughout the years.”
Turgut Uzer, President Tire, Tire Reinforcement Materials & Automotive of Sabanci Holding, commented:
“With the increasing internationalization of Beksa’s client portfolio Sabanci had become less aligned with the long-term strategy for the company. We have come to a good agreement with our longstanding partner Bekaert on the sale of our share in Beksa. We thank them for twenty years of excellent collaboration in the joint venture and wish them a successful continuation of the business.”