23 de August, 2011

Sigdo Koppers acquires Belgian company Magotteaux and establishes itself as an international leader in services to Mining and Industry

The sales transaction totaled US $ 790 million and marks a major milestone in strategic business definition of Sigdo Koppers.  Magotteaux has a long history in the business of services to the mining and cementindustries, consolidating Sigdo Koppers as a leading international provider of products and services for mining and industry. 

The Sigdo Koppers S.A group agreed to acquire 100% ownership of the company of Belgium origin Magotteaux Group-leader in production of items for grinding and castings- operation totaling US $ 790 million (€ 550 million), as reported to the Superintendency of Securities and Insurance.

The acquisition of Magotteaux marks a significant milestone for Sigdo Koppers, because due to this the group greatly increases their size and establishes itself as a conglomerate with ample international direct presence, thus positioning itself as the leading international group in the areas of services and products for mining and industry.

Magotteaux is a global company, world leader in the production and sale of high chromium grinding balls used in the milling processes of the mining and cement industries. It currently has a capacity of 240,000 tonnes per year. Also it is one of the leading world producers of parts and castings for different industries with an production capacity of 64,000 tons annually.

The company of Belgian origin owns 12 production plants in 10 countries and 38 commercial offices in 24 countries. Its main production plants are in Belgium, Brazil, USA, Canada and Thailand. Additionally, the company is part of two joint ventures (Proacer / Chile and Scaw / South Africa) through which it sells an additional 160,000 tons of high chromium balls.

Magotteaux has expected annual sales and EBITDA for 2011 of US $ 720 and US $ 95 million, respectively. 80% of its production is intended to supply the mining and cementindustries, mining being its most important business segment, representing 60% of the expected sales of 2011. Additionally, the company provides products and services to other sectors such as quarries and dredging. Growth prospects are ambitious, the current EBITDA of the company is expected to double in four years.

This acquistion, once completed, will mean a significant increase in the size of the Sigdo Koppersgroup, expecting that the sales of the Magotteaux Group will represent about 35% of the total consolidated sales of the Chilean conglomerate.

The CEO of Sigdo Koppers, Juan Eduardo Errázuriz said that "the acquisition of Magotteaux represents a unique and important milestone in the history of over 50 years of Sigdo Koppers, and evidences thepermanent interest in adding value to the group and all its shareholders ". 

Errázuriz stressed that "the purchase of Magotteaux is consistent with the group's decision to focus its core businesses in the areas of services to mining and industry, establishing itself as a global firm in these areas, offering a complete service to its customers."

Also, the general manager of Sigdo Koppers, Juan Pablo Aboitiz, explained that "like our group, Magotteaux is mainly focused on the mining and industrial sectors, so incorporating the company of Belgian origin contributes to expand the services of the conglomerate in those areas and expand our supply abroad".

With this, Sigdo Koppers established itself as leading and complete supplier for mining and industrial companies, by giving them construction and

assembly services for major works through Ingeniería y Construcción Sigdo Koppers, rental and sale of machinery through SK Comercial; production of ammonium nitrate and rock fragmentation services through Enaex; and transport of raw materials and logistics through Puerto Ventanas and its subsidiary Fepasa. Added are other industrial services such as the production of polypropylene films through Sigdopack, the production of high purity hydrogen by Compañía de Hidrógeno del Bio-Bio, and other complementary services provided by related companies, such as SKBergé.

Noteworthy is that in this process, Sigdo Koppers has counted on the financial advice of BNP Paribas and legal advice of Barros & Errazuriz and Allen & Overy LLP.

Magotteaux, a leading company in its field.

Magotteaux Group, founded in Belgium in 1920, is headquartered in Liege, Belgium, and provides products and services to those industries in which weathering processes (crushing, grinding, etc.), are essential for the manufacture of its end products, establishing itself as a world leader in its field.

The company is focused on the production of items with high added value, recognized as a leader in technology and patents Magotteaux has several research and development centers with teams of engineers and scientists, the most important centers being in Belgium, South Africa and Australia. The company has patented more than 20 technologies and proprietary processes in 60 countries. All this allows the company to have a knowledge base that gives it a significant competitive advantage.

Magotteaux employs about 2,400 people worldwide. In Chile, is the main shareholder of the company Proacer, which has a plant in the town of Lampa and provides services to the main mining firms operating in the north of the country.