Sigdo Koppers, an industrial engineering conglomerate based in Chile, has agreed to buy Magotteaux Group, a Belgian mining and cement services company for the sum of $ 790 million. The acquisition deal follows the sale of 64% stake Sigdo Koppers held in appliance manufacturer Compania Tecno Industrial SA. The stake was sold to Electrolux AB, the Swedish home appliance making company.
With the acquisition of Magotteaux Group, the South American company is hoping to steady its position in the international mining products and services industry. They hope that the Magotteaux Group will be responsible for 35% of its total consolidated sales. It is anticipated that they will be worth $ 720 million in sales to Sigdo Koppers.
Juan Eduardo Errazuriz, executive president of Sigdo Koppers said that the purchase of Magotteaux was consistent with the group's decision to focus its main businesses in the mining and industry services area, consolidating itself as a global firm in these sectors.
The Magotteaux Group produces high chromium grind bearings used in the mining and cement industries. They also manufacture machine components for several sectors and have a dozen production plants spread out over 10 countries which including Belgium, Brazil, the United States, Canada and Thailand.
Steel bearings manufacturer Proacer also has a joint venture agreement with the Magotteaux Group. And Magotteaux Group has another joint venture in South Africa with Scaw Metals Group that is owned by mining giant Anglo American. These associations will benefit Sigdo Koppers.
Source: Sigdo Koppers