Igor Gorostiaga
Norgestion
Gerdau Aceros Europa
Deal Type
Acquisition
Sector
Energy & Sustainability
Completion Date
23rd May 2016
Deal Value
€155m
Company Background
Gerdau is a special bar quality (SBQ) steel producer mainly for the automotive industry. The steel grades the company produces have special qualities and characteristics in order to handle high levels of stress such as torsion, centrifugal force, and high pressure and motion cycles.
Gerdau, also known as Sidenor in European markets, recycles tons of scrap to produce special steel in it own facilities. The steel is mainly used in car engines, brakes and suspension and transmission systems. It also produce a range of products for the oil and gas industry, machine tool manufacturers or wind mill flanges, among other.
In addition, the company owns one of the largest center of research and development in Europe, which is considered a reference in the development of new steel production technologies,
Deal Summary
The Spanish investor Clerbil, SL formed by the management team of Gerdau Aceros Europa acquired the European activities of the specialty steel producer of the Brazil based Gerdau Group.
This transaction enables Gerdau to focus on its domestic market and, on the other hand, will allow the acquiring management team to keep their industrial plan and leverage their strategy independently from the Brazilian Group. The company will operate under its original brand Sidenor.
Sidenor and Gerdau will continue collaborating on the development of new products, particularly steel applications for the automotive industry.
Value Added
NORGESTION structured the business plan, looked for the potential financing and investor in order to make the management team bid competitive for entering into the sale process undertaken by Gerdau Brazil. This was important in order to keep reliability on the existing banking pool. Additionally, once exclusivity was gained, NORGESTION negotiated the main issues of the transaction generating the best structure in order to enable an efficient deal for the client.
We identified the strengths of the management team and turn them into an attractive offer that could not be turn down.
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