Brescia, Italy-based special steel producer Leali Group has been purchased by Geneva, Switzerland-based Klesch Group. The two companies inked a binding agreement on February 21, according to which the transaction will be completed by the end of 2013. Until then, Klesch will lease three out of four sites of the acquired group. As reported by local media, the offer by Klesch amounts to over €40 million.
Leali Group operates a mini-mill in Trento, Italy where square and round special steel billets and blooms are cast, and a rolling mill in Brescia, Italy where the company rolls the semi-finished products into square, round and flat bars. Finally, its subsidiary Laf srl performs cold machining works such as cutting, peeling, grinding and chamfering. Leali’s annual crude steel production capacity amounts to 650,000 mt, while it sells about 200,000 mt a year of special steel bars suitable for the needs of several strategic industries, including the automotive sector.
Previously, Leali also operated a rebar rolling mill in Brescia, but due to the ongoing sluggish market environment it decided to shut the mill down and Klesch has not included that plant in the transaction.
Geneva, Switzerland-based Klesch Group is led by US-tycoon Gary Klesch. The company’s annual sales revenue amount to more than $5 billion, while it employs 4,500 people in 40 sites across 16 countries. Up to now, its business has been focused on the petrolchemical and aluminium sectors.