PIO British steel tycoon Sanjeev Gupta buys Texas-based Keystone
London: British-Indian industrialist Sanjeev Gupta's GFG Alliance on Wednesday announced the purchase of Texas-based Keystone Consolidated Industries Inc. (KCI) from Contran Corporation.
London-headquartered GFG Alliance's group company Liberty Steel USA has acquired KCI, including all its subsidiaries, for $320 million.
The GFG Alliance said the addition of KCI to its group company Liberty Steel USA creates one of the country's largest producers of wire rod and provides a platform for GFG to grow its US GreenSteel capacity to 5 metric tons per annum by 2020.
"Today is an exciting milestone in our ambitious journey in the United States. I warmly welcome all Keystone employees to the global GFG family," said GFG Executive chairman Sanjeev Gupta.
"The long history, strong management, excellent work force and industry position of KCI will pair well with our existing Georgetown plant and will serve as a strong base for our continued expansion to 5mmtpa of steel capacity in the region," he said. Gupta said the year 2019 will be an exciting one for his company as it plans to continue to grow its presence across North America and access the public markets.
The latest deal was supported by large North American banks including Wells Fargo NA and BMO Harris Bank (BMO Harris), along with funds managed by BlackRock Financial Management Inc.