BGL announces sale of ROCA ACERO S.A. de C.V. business to Steel Dynamics

Brown Gibbons Lang & Company (BGL) is delighted to announce the sale of ROCA ACERO S.A. de C.V. (ROCA), a ferrous & nonferrous scrap metals recycling business to a well-known fabricated structural metal company, Steel Dynamics, Inc. STLD.

The agreement was announced earlier in May, and the transaction secured the required regulatory approvals and was closed officially earlier this month.

As disclosed earlier, Steel Dynamics obtained the equity interest of ROCA.

For the unversed, ROCA, headquartered in Monterrey, Mexico, operates five scrap processing facilities that are strategically located near high-volume industrial scrap sources situated throughout central and northern Mexico.

These combined facilities annually ship nearly 575,000 gross tons of scrap and hold an estimated processing capacity of over 850,000 gross tons.

For the record, Steel Dynamics is one of the leading domestic metals recyclers and steel producers in the United States, considering its yearly metals recycling and steelmaking capability, with facilities dispersed throughout Mexico and the United States.

It manufactures steel products, including cold roll, hot roll, structural steel beams, coated sheet steel, rail, shapes, cold finished steel, engineered special-bar-quality steel, specialty steel sections, merchant bar products, and steel joists and decks.

If sources are to be believed, this transaction will further empower Steel Dynamics to strengthen its Southwest U.S. and Mexico growth strategy. 

Apparently, this strategy is inclusive of the company's raw material procurement in the region and delivers a more profound competitive gain to its U.S. electric-arc-furnace steel operations.

With this acquisition, Steel Dynamics now has an estimated annual ferrous & nonferrous scrap processing capacity of more than 2.5 million gross tones.

The Metals & Metals Processing team at BGL, managed by Vince Pappalardo, holds considerable transaction experience in various subsectors of the broader metals industry, representing both ferrous as well as nonferrous metals enterprises.

The coverage also includes mills and foundries, service centers, manufacturing, and recycling.

Source credit - https://www.einnews.com/pr_news/595451775/bgl-completes-sale-of-roca-acero-s-a-de-c-v