GFG Alliance’s Australian unit InfraBuild while announcing 92% YoY jump in EBITDA to AUD 197 million for FY22 announced that following the repayment of its ABL in September, InfraBuild intends to raise new finance to support the ongoing liquidity of the business and fund the acquisitions of Keystone Consolidated Industries, Johnstown Wire Technologies & Georgetown steelworks in USA Keystone Consolidated Industries, comprising an Electric Arc Furnace, rolling mill and wire mill at Steel and Wire (Peoria), mesh manufacturing sites from Engineered Wire Products (Ohio and New Mexico) Johnstown Wire Technologies (Pennsylvania and Ohio) Georgetown steelworks (South Carolina) Under the potential acquisition, InfraBuild would acquire the businesses from its parent company, GFG Alliance, to create a vertically integrated EAF long steel producer with leading market positions in Australia and the United States, providing strong synergies across its product portfolio. InfraBuild said “As well as enhancing its balance sheet and financial flexibility, InfraBuild would benefit from revenue diversification, exposure to a US infrastructure market buoyed by the AUD 1.2 trillion Infrastructure Investment and Jobs Act, and a shared mission for low carbon steel production through the recycling of scrap metals. The US units would benefit from the mature governance and operational structures of InfraBuild and would be well-positioned to achieve long-term capital and operating efficiencies.” The intended acquisitions build on InfraBuild’s integration of international recycling facilities in La Place and Tampa in the United States over FY22. The intended acquisitions are expected to be consolidated into the Group through H2FY23, subject to diligence and financing structure.
GFG Alliance’s Australian unit InfraBuild while announcing 92% YoY jump in EBITDA to AUD 197 million for FY22 announced that following the repayment of its ABL in September, InfraBuild intends to raise new finance to support the ongoing liquidity of the business and fund the acquisitions of Keystone Consolidated Industries, Johnstown Wire Technologies & Georgetown steelworks in USA Keystone Consolidated Industries, comprising an Electric Arc Furnace, rolling mill and wire mill at Steel and Wire (Peoria), mesh manufacturing sites from Engineered Wire Products (Ohio and New Mexico) Johnstown Wire Technologies (Pennsylvania and Ohio) Georgetown steelworks (South Carolina) Under the potential acquisition, InfraBuild would acquire the businesses from its parent company, GFG Alliance, to create a vertically integrated EAF long steel producer with leading market positions in Australia and the United States, providing strong synergies across its product portfolio. InfraBuild said “As well as enhancing its balance sheet and financial flexibility, InfraBuild would benefit from revenue diversification, exposure to a US infrastructure market buoyed by the AUD 1.2 trillion Infrastructure Investment and Jobs Act, and a shared mission for low carbon steel production through the recycling of scrap metals. The US units would benefit from the mature governance and operational structures of InfraBuild and would be well-positioned to achieve long-term capital and operating efficiencies.” The intended acquisitions build on InfraBuild’s integration of international recycling facilities in La Place and Tampa in the United States over FY22. The intended acquisitions are expected to be consolidated into the Group through H2FY23, subject to diligence and financing structure.
