Croatia/United States – US-based Commercial Metals Company (CMC) has sold its Croatian pipe mill and CMC Sisak subsidiary to Italian steel specialist the Danieli Group. A definitive purchase agreement has already been signed by both parties and the transaction value is estimated to be around US$ 30.4 million.
Under the contract, certain assets pertaining to CMC Sisak will be allowed to be kept, with Commercial Metals to continue its efforts to market them in the future. According to the Texas-based metals company, it has received financial assistance from Deutsche Bank Securities to achieve this goal.
Joe Alvarado, CMC’s President and Chief Executive Officer, says the sale of all of the outstanding shares of CMC Sisak ‘completes an important step’ in a strategic plan intended to reposition the business ‘for improved financial performance and increased shareholder value’. He adds: ‘We remain committed to our strategy of vertical integration and a continuous improvement of our overall cost structure.’
Commercial Metals and its subsidiaries manufacture, recycle and trade metal and steel products, associated services and materials. Its operations cover a copper tube mill, product warehouses related to construction, steel fabrication and processing facilities, steel mini-mills, metal recycling plants and distribution offices throughout the USA as well as in the global markets.
For more information, visit: www.cmc.com
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