The US Commercial Metals Company (CMC) said on Monday that it had concluded the sale of its Croatian Pipe Mill and wholly-owned subsidiary, CMC Sisak, to the Danieli Group of Italy.
The steel mill in Sisak, some 50 kilometres east of Zagreb, was in CMC's 100% ownership and was sold to the Danieli Group for around 30.4 million dollars, according to a news release on CMC's web site.
Certain assets of CMC Sisak are excluded and CMC is continuing to market those assets, the US company said without revealing details about those assets.
CMC's financial advisor in the transaction was Deutsche Bank Securities.
"We are pleased to announce that we have completed an agreement with Danieli for the sale of our Croatian pipe mill operations. The sale of all of the outstanding shares of CMC Sisak completes an important step in our strategic plan to reposition the business for improved financial performance and increased shareholder value," said President and Chief Executive Officer Joe Alvarado.
CMC bought the Sisak steel mill in 2007 and at the end of 2011 it announced that it had decided to sell the factory.
The Danieli Group is one of the world's three biggest suppliers of steel products.
Croatian Metals Workers' Union representatives in the Sisak steel mill said they were glad about the sale, expressing hope that production in the factory would be restarted soon and that as many former workers as possible would be hired again.
