GFG’s InfraBuild to acquire three US steel assets

November 20, 2022 09:00 AM AEDT | By Ritwika

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GFG’s InfraBuild to acquire three US steel assets — Image source: © Utah778 | Megapixl.com

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Highlights:

InfraBuild, the GFG’s steel and recycling unit, is planning to acquire three US-based businesses.

InfraBuild will raise new finance via debt markets to execute the acquisition.

Global industrial firm GFG Alliance’s steel and recycling unit, InfraBuild, announced on Thursday (17 November 2022) that it is likely to acquire three US-based businesses from its parent undergoing broad restructuring.

Of late, GFG Alliance has been spotted working towards arranging to refinance for its ‘cash-starved’ businesses in steel, aluminium, and energy, followed by the supply chain finance firm, Greensill, filing a case of insolvency against the company in March 2021.

As a result, InfraBuild mentioned that it aims to raise new finance via debt markets to acquire Keystone Consolidated Industries in Ohio and New Mexico, Johnstown Wire Technologies in Pennsylvania and Ohio, and Georgetown Steelworks in South Carolina from their parent companies. However, the value of the acquisition has not been revealed yet. The acquisition deals are expected to close in H2 FY23.

Not only the raised capital will help InfraBuild to execute these acquisitions, but it will also contribute to the liquidity of the business.

InfraBuild already owns international recycling facilities in Louisiana and Florida. Therefore, it expects to gain benefits from the US market growth, backed by Infrastructure Investment and Jobs act.

The steelmaking company, which will be acquired from its parent company, has reported AU$197 million of EBITDA in the Q1 FY23, up by 24% compared to the previous corresponding period.

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