Swiss Steel Group has successfully divested several of its distribution entities in Eastern Europe, marking a significant step in its strategic program, SSG 2025. The sale to IMS group, a part of JACQUET METALS, focuses on countries like the Czech Republic, Poland, and Slovakia, among others. The move aims to streamline operations and enhance focus on Swiss Steel Group's core strengths.
In a crucial decision that aligns with its strategic vision for the future, Swiss Steel Group has successfully completed the divestiture of its distribution entities across various Eastern European nations. The sale was made to IMS group, a division of JACQUET METALS. This decision comes as a part of the Swiss Steel Group's long-term plan, called SSG 2025, which aims to evolve the company into a global force.
The deal includes entities in the Czech Republic, Poland, Slovakia, Hungary, Lithuania, Estonia, and Latvia. These entities generated a total net revenue of $188 million and an EBITDA of $14.4 million in 2022, employing 267 people. Both organizations affirm their commitment to delivering high-quality products and services as this deal unfolds.
This is not the first time Swiss Steel Group and JACQUET METALS have come together for a business agreement. The partnership dates back to a similar deal in 2015 when distribution entities in Germany, Austria, Belgium, and the Netherlands were successfully sold. This new agreement strengthens an already strong business relationship between the two companies.
By divesting these distribution entities, Swiss Steel Group can narrow its focus to its core strengths. This move is aimed at making the company more competitive and better positioned for long-term growth. It also allows Swiss Steel Group to reaffirm its commitment to maintaining existing mill-direct business in the affected countries, ensuring ongoing service and product quality for its customers.
The agreement also represents a broader trend within the steel industry, where companies are seeking to optimize operations by focusing on key areas of strength. Such moves are seen as vital in an industry facing increasing costs, fluctuating demand, and the imperative to innovate.
The move is also of strategic importance to IMS group and its parent, JACQUET METALS, as they expand their reach across Eastern Europe. This development adds another feather to their cap, providing them with additional resources and market access, which is key to their continued success.
The successful divestiture by Swiss Steel Group is a significant milestone in its strategic plan, setting the stage for focused growth and increased competitiveness. It also fortifies an enduring business relationship with JACQUET METALS. Both companies look set to benefit from this move, which is aligned with the broader trends of optimization and specialization within the steel industry.