News


26 de June, 2015

Sigdo Koppers creates Consortium with Australian fund Champ and analyzes merge of Magotteaux with Bradken, leading company in Casting

The consortium formed by Sigdo Koppers and CHAMP, will invest 70 million Australian dollars in convertible preferential shares of a subsidiary of Bradken. These funds will be used to repay debt and increase financial flexibility of its business. A sixty day period of negotiation was settled between both parts.

Sigdo Koppers SA, announced today the formation of a consortium with Australian private equity fund CHAMP, through which a proposal was made to Bradken –one of the world's leading providers in casting manufacture and differentiated products and consumption capital for natural resources, energy and freight rail industries– to analyze its merge with Magotteaux, a subsidiary of Sigdo Koppers.

 

Both parts agreed to an exclusivity period of sixty days to review strategic and financial advantages of this possible merge, which would create a global leader in casting and grinding balls manufacture. If successful, it would result in a favorable transaction for both companies.

 

Juan Pablo Aboitiz, CEO of Sigdo Koppers, noted that "the possibility of merging the two companies is consistent with the strategy of Sigdo Koppers to internationalize its operations and become a strategic supplier for the sectors of mining and industry globally. Therefore, we believe that with Bradken, a recognized leader in its field, we can continue moving forward in delivering new and better solutions with added value for customers, as both companies are complementary both geographically and in terms of the range of products that hey offer ".

 

Aboitiz said that "our alliance with Australian private equity fund CHAMP responds to its market knowledge, as well as of Bradken and its expertise in their business."

 

The consortium formed by Sigdo Koppers and CHAMP, will invest 70 million Australian dollars, equivalent to US$ 54 million, in convertible preferential shares of Bradken RPS Pty Limited, a subsidiary of Bradken. These funds will be used to repay debt and increase financial flexibility of the business of the Australian company. Of that total, 20%, 14 million Australian dollars, equivalent to about US$ 10.8 million will be provided by SK.

 

Bradken is the leading supplier of differentiated consumable and capital products to the global resources, energy and freight rail industries. With annual sales of around one billion Australian dollars (equivalent to about US $ 780 million), it has 4,600 employees in 34 manufacturing plants and over 30 sales and service centers in Australia, New Zealand, USA, Canada , UK, Indonesia, Malaysia, South Africa, South America and China. The company, listed on the Australian Stock Exchange since August 2004, has a history of over 90 years and operates four market-focused divisions and a separate business. 

 

Magotteaux S.A., a company of Belgian origin acquired by Sigdo Koppers S.A. in 2011, is a leading company in development, manufacture and commercialization of grinding systems and wear parts. With worldwide presence, it has 19 production plants, located in Belgium, Spain, France, Chile, Brazil, Mexico, USA, Canada, India, China and Thailand. It also has 28 sales offices and research centers where experts work on product development and process optimization. Additionally, it has a joint venture with ScawMetals South Africa, through which it commercializes 100,000 tons of high chrome balls.