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WireCo acquires Dutch rope manufacturer for $177M

by wireworld on 07/18/2012 - 07:51 pm

Tags: Acquisitions, Press Releases

WireCo WorldGroup Inc. said it has acquired a Netherlands-based maker of synthetic ropes, the Kansas City-based company’s third acquisition in the industry in four years.



The $177 million deal folds Royal Lankhorst Euronete Group B.V. into WireCo’s synthetic rope business, which it buoyed with a 2009 purchase of Phillystran Inc. and 2011 purchase of Grupo Oliveira Sa. WireCo’s announcement said the purchase completes its plans to gain a significant role in synthetics.



Lankhorst makes synthetic ropes, industrial yarns, netting, yachting products and recycled plastic products, the announcement said. WireCo already is a leading maker of wire ropes, cables and specialty wire.



Ira Glazer, CEO of WireCo, said the move into synthetic products helps diversify the company’s business with new products, territories and markets. U.S. markets will account for 28 percent of sales after the Lankhorst deal, according to a company presentation in June.



Lankhorst President Jose Gramaxo will head the marketing and operation of the combined synthetic’s business as a senior vice president of global synthetics.



With the acquisition of Lankhorst, worldwide employment by WireCo exceeds 4,500, with 25 plants in 11 countries, said David Hornaday, senior vice president and chief administrative officer. Its Missouri operations include the headquarters in Kansas City, which has 140 employees, and plants in Chillicothe, Carrollton, Sedalia and Kirksville.



Sales should top $1 billion in 2013 with the Lankhorst acquisition, Hornaday said.  WireCo is owned principally by the private equity firm Paine & Partners LLC.

Read more here: http://www.kansascity.com/2012/07/16/3706925/kc-based-wireco-acquires-dutch.html#storylink=cpy