Metals and engineering conglomerate GFG Alliance will be buying all outstanding stock in Keystone Consolidated Industries (KCI) from Contran Corporation for a consideration of $320 million (Rs 2,252 crore) via its group company Liberty Steel USA, the company announced on Monday.
The deal is financed by two North American banks who will be providing an asset backed loan facility and funds are being managed by BlackRock Financial Management Inc. who will be providing a term loan. GFG will contribute equity and its unencumbered Liberty Steel Georgetown plant to the transaction.
“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,” said Sanjeev Gupta, executive chairman of Liberty and the GFG Alliance. “As we look ahead to the future, GFG will benefit from Keystone’s century-long history, its robust operations, and its reputation for producing top quality steel,” Gupta said.
The announcement comes in the middle of challenges that the company is facing in Gupta’s home country, India, in implementing the resolution plans for the companies he has acquired under the country’s insolvency law- namely Amtek Auto and Adhunik Metaliks.
