Bekaert reports that it has reached an agreement in principle with the Ontario Teachers’ Pension Plan to buy out its 33% equity share in the Bridon-Bekaert Ropes Group (BBRG).
A press release said that the ropes and advanced cords business, which became the BBRG at the end of June 2016, will become a wholly owned subsidiary of Bekaert. “Taking full ownership ... fits within the ambitions and strategy of Bekaert to grow a global ropes and advanced cords business that will create significant value over time for customers worldwide and for the Bekaert Group.”
Bekaert CEO Matthew Taylor said in the release that it made sense for the company to follow this direction as BBRG was established in a period that saw weak markets and integration challenges. "Taking full control ... will allow us to accelerate the turnaround efforts, drive greater synergies between BBRG and the Bekaert Group and take advantage of the complementary nature of the businesses.” He noted that the deal reflects Bekaert’s commitment to and belief in BBRG, and will enable it to focus on helping the business achieve its true potential."
“I will personally take up the role of CEO of BBRG, alongside my existing role as CEO of Bekaert,” Taylor said. He praised the efforts of Bruno Humblet, who he noted had been the driving force behind creating and integrating the Bridon-Bekaert Ropes Group, as well as the Ontario Teachers’ "for the collaborative approach, active cooperation and drive they brought to the joint venture over the last two years."
The agreement, subject to customary closing conditions including regulatory approvals, is expected to be completed in the coming months, the release said.