WireCo WorldGroup Inc, a leading producer and marketer of specialty wire ropes, has acquired Grupo Oliveira Sá and certain other assets comprising its worldwide business. Terms of the transaction have not been disclosed.
Ira Glazer, WireCo CEO, said the acquisition is a continuation of his company’s strategy to strengthen in core markets, to bring access to new geographic and end markets, and to expand its synthetics capabilities.
Portuguese company Oliveira manufactures high performance synthetic ropes targeted at deepwater mooring line and towing applications, and serves marine markets that Glazer said are “highly complementary” to WireCo’s existing offerings, including offshore oil and gas and fishing.
“In combination with our December 2009 merger with Phillystran, we believe we will now offer the market a full package of technologically advanced synthetic ropes. In addition, Oliveira has a strong position in the global wire rope aftermarket for cranes, which we believe will further enhance our leadership in that segment.
“Oliveira is highly respected in the market given its premium brand, product quality and strong global reputation with long-standing customers and key distributors,” said Glazer. “WireCo has a solid track record of integrating acquisition targets, and we expect a seamless transition for Oliveira’s customers and employees as we move forward.”
WireCo expects Oliveira’s existing management team to remain with the company, as has been the case with previous WireCo acquisitions.
The Kansas-based company also plans to maintain Oliveira’s manufacturing operations in Maia and Paredes and hopes to expand the utilisation of both facilities, which would require investment in plant and equipment and create the potential for additional jobs.
WireCo has completed multiple acquisitions in recent years that have enhanced its global market position in wire rope and synthetic ropes, including Phillystran in 2009, Casar and Wireline Works in 2007 and Aceros Camesa in 2005.
In addition, the company has a joint venture with Wuhan Iron and Steel to build the world’s most modern wire rope manufacturing facility in China, which started production in 2009.
WireCo is owned by investment funds managed by Paine and Partners, LLC, the San Francisco and New York-based private equity firm. The firm played a key role in facilitating the acquisition and arranging the financing for the transaction.
