The GFG Alliance, a global concern owned by Sanjeev Gupta, has completed its purchase of Keystone Consolidated Industries (KCI).
KCI produces steel fabricated wire, industrial wire and wire rods and claims to the only company that makes ‘100% American made’ products.
The deal means that KCI will be a part of Liberty Steel USA, making the latter ‘one of the country’s largest producers of wire rod’, according to GFG.
GFG claims that the completion of the deal paves the way towards a proposed US IPO of Liberty Steel USA, to be led by Credit Suisse. The deal has been supported by big North American banks, including Wells Fargo NA and BMO Harris Bank and reinforces GFG’s credentials as ‘a significant foreign direct investor’ in North America. The company is moving into new headquarters in Madison Avenue, New York and targeting other major investment opportunities in the North American industrial, energy and financial sectors.
Sanjeev Gupta, executive chairman of GFG, said the completion of the deal marked a milestone for GFG in North America. He warmly welcomed Keystone employees and said that KCI’s long history, strong management and excellent workforce and industry position ‘will pair well with our existing Georgetown plant and will serve as a strong base for our continued expansion to 5Mmt/yr of steel capacity in the region.
Gupta said that the support of banks like Wells Fargo and BMO Harris and Blackrock will help his company to grow its platform in the North American steel value chain. “2019 will be an exciting year as we plan to continue to grow our presence in North America and access public markets,” he said.
Grant Quasha, chief investment officer – North America for the GFG Alliance commented: “Keystoneis a high-performing, profitable asset with modern equipment, excellent downstream operations, connections to key markets, highly-skilled workers and strong managers. The company’s outstanding reputation for low carbon wire rod and extensive downstream operations complement our existing expansion and revitalisation programme at our Georgetown, South Carolina plant.”
Chris Armstrong, CEO of KCI, added: “I am excited that KCI is joining the GFG group and what this means for the future of the company, its market-leading brands, its employees and its customers. GFG is the best possible new parent and partner for KCI’s storied history and future growth. I look forward to being a part of GFG’s unparalleled international growth and to continue KCI’s expansion of its steel and value-added operations in the US and the region.”