By Cameron Chai
Commercial Metals (CMC) has reported that the company has sold its Croatian Pipe Mill and CMC Sisak, CMC’s wholly-owned subsidiary, according to a definitive purchase agreement signed between CMC and Danieli Group.
The value of this sale is around U.S. $30.4 million. In accordance with this purchase contract, CMC Sisak’s certain assets are kept out and those assets are continuously marketed by Commercial Metals. CMC received financial assistance from Deutsche Bank Securities.
The CEO and President of CMC, Joe Alvarado stated that the company is delighted that its Croatian pipe mill operations have been sold to Danieli. Completing the sale of CMC Sisak’s outstanding shares is considered to be significant in the company’s plan to relocate the business for increased shareholder value and enhanced fiscal performance. The company stays committed to its plan of vertical integration, a continuous development of overall cost structure and offering customers with excellent service, Alvarado stated.
Commercial Metals and its subsidiaries produce, recycle and sell metal and steel products, associated services and materials through a network, which includes a copper tube mill, product warehoused related to construction, steel fabrication and processing facilities, steel minimills, metal recycling plants and distribution offices in the US and also in the global markets.