Aceros Corsa & Gerdau
Selected Transaction– Mexican Family Business and International Public Company: Corsa and Gerdau (SOP: GGBR)
Background
- Leader steel company that needs to finance the construction of a new US $400 million plants and complete a minority secondary sale of their business.
PC Capital’s Role
- Determined the capital requirements for the Project, as well as the optimal capital ratio of debt to capital and returns to the investor..
- Executed a valuation of the Company under different costs of capital and growth scenarios to determine an appropriate rango of precios for the minority sale of the Company.
- They structured and negotiated the terms and conditions for the transactions with strategic investors.
The Joint Venture formed by Corsa and Gerdau allowed the start of the construction of the largest steel beams factory in the country.
Results
- Successful negotiation with strategic investors to complete a combined transactions of more tan $ US 600 million.
- The original valuation was increased over 30%.
- They kept control of the operations through the controlling position of the shareholders.