Vallourec, a leader in tubular solutions, finalized the sale of its Mülheim site to CTP, Europe's largest industrial property developer, for €39 million. This strategic move aligns with Vallourec's commitment to reducing debt, aiming for €741 million by year-end 2023 and striving for zero net debt by 2025. The sale showcases their adeptness in navigating complex transactions amid challenging circumstances.
Vallourec, a frontrunner in premium tubular solutions, recently concluded a pivotal transaction, selling its Mülheim site to CTP, Europe's eminent industrial property developer. This milestone, heralded by the waiver of Mülheim's preemption right by the city council on December 14th, culminated in the fulfillment of all closing prerequisites on December 22nd.
The transaction encompasses the sale of approximately 330,000 square meters of property, fetching a total purchase price of €39 million. Of this, an anticipated €37 million is set to be received in cash within a fortnight, a significant move impacting Vallourec's financial trajectory.
Philippe Guillemot, Chairman and CEO, emphasized the transaction's significance, aligning it with Vallourec's strategic objectives. This sale plays a pivotal role in Vallourec's pursuit of debt reduction, targeting a net debt below €741 million by the close of 2023. Aiming for five consecutive quarters of deleveraging, the company steers towards its ultimate ambition of achieving zero net debt by or before the end of 2025.
Guillemot underscored the resilience and adaptability demonstrated by Vallourec, navigating the complexities of transactions amid a challenging business environment. This successful sale stands as a testament to Vallourec's collaborative approach, harmonizing with multiple stakeholders to accomplish strategic objectives.
Vallourec's strategic sale of its Mülheim site to CTP for €39 million is a pivotal move in their pursuit of financial consolidation. This transaction amplifies their commitment to debt reduction, setting ambitious targets for net debt and exemplifying their adeptness in executing complex transactions amidst evolving market conditions.