Sources: GFG Alliance, London; CP staff
GFG Alliance has entered a binding agreement to purchase all of the outstanding stock in Keystone Consolidated Industries Inc., Dallas, from holding company Contran Corp. It projects a closing of the $320 million deal by year end and will integrate the business with an existing portfolio company, Liberty Steel USA, based at a Georgetown, S.C., mill acquired in late-2017 from Arcelor Mittal.
In addition to its charter Keystone Steel and Wire brand, KCI spans Keystone Bar Products, Engineered Wire Products and Strand Tech Manufacturing. Among products or capacity its brings to Liberty Steel are an MBQ/SBQ bar mill plus one prestressing strand and three welded wire reinforcement mesh facilities. The combined company will have operations in Georgia, Illinois, New Mexico, Ohio, South Carolina and Texas. With all KCI products 100 percent made in the USA, Liberty Steel can leverage its concrete-reinforcing inventory on Buy America-bound infrastructure contracts.
“KCI and its businesses offer Liberty the chance to merge our existing U.S. steel business with one of the country’s most productive wire rod operations,” says GFG North American Chief Information Officer Grant Quasha. “Combined with Liberty Steel Georgetown, KCI will increase our downstream capabilities, create critical synergies, add strong management and provide better value and products for customers.”
“The Keystone acquisition is a core part of GFG’s Greensteel vision to become a leading U.S. producer of high quality, cleanly produced steel,” adds GFG Alliance and Liberty Steel Executive Chairman Sanjeev Gupta. “As we look to the future, GFG will benefit from Keystone’s century-long history, robust operations, and reputation for producing top quality steel.”