Outokumpu restates consolidated statement of income 2021 and 2022
by David Fleschen
Outokumpu restates consolidated statement of income and relevant Group and segment key figures for 2021 and first half of 2022 to reflect the divestment of majority of its Long Products business
On July 12, Outokumpu announced that it has signed an agreement to divest the majority of the Long Products business operations to Marcegaglia Steel Group, a leading industrial group worldwide in the steel processing sector. Outokumpu will focus on its core business of flat stainless steel products.
The total consideration on a debt and cash free basis amounts to EUR 228 million, implying an EV / Adjusted 2021 EBITDA multiple of 4.9x. Outokumpu expects the transaction to strengthen its financial position.
The divestment is expected to be completed by the end of this year. The completion of the transaction is subject to customary closing conditions and regulatory approvals by the competition authorities and requires for instance internal structuring before completion. The transaction will be carried out as a share sale.
Adjusted EBITDA of business area Long Products accounted for approximately 5% of the Group's adjusted EBITDA in 2021. The transaction includes Long Products’ melting, rod and bar operations in Sheffield, UK; bar operations in Richburg, the US; and wire rod mill in Fagersta, Sweden. The transaction does not include Outokumpu Long Products operations in Degerfors and Storfors in Sweden, whose adjusted EBITDA amounted to EUR 8 million in 2021. The above mentioned units continue their operations for now as part of the Outokumpu Group, and different options are to be evaluated for the future of the units.
Source: Outokumpu, Photo: Fotolia