Outokumpu acquires Fagersta Stainless wire rod mill in Sweden
Outokumpu Oyj has signed an agreement with Sandvik for the acquisition of full ownership of the Fagersta Stainless wire rod mill in Sweden.
Steel company Outokumpu Oyj has agreed to acquire Sandvik's 50% share in the Fagersta Stainless wire rod mill located in Sweden. The deal gives Outokumpu complete ownership of the facility, which specializes in the production of stainless steel wire rod.
Fagersta Stainless is a significant player in the specialty stainless steel wire rod market, serving a global customer base. In 2017, the company reported revenues of approximately 150 million euros, with deliveries totaling 52,000 tonnes. This acquisition is expected to complement Outokumpu's existing ASR wire rod mill in Sheffield, UK.
The cash consideration for the transaction is 18 million euros. The deal will be executed in two phases. Outokumpu's ownership stake will increase to 90% by the end of June 2018 and reach 100% by the end of 2019. The completion of the transaction is subject to customary closing conditions.