UK's Liberty House acquires U.S. based Keystone Consolidated Industries

Sanjeev Gupta led Liberty House is on a spree to acquire various steel assets across the globe. Along with vying insolvent assets in the Indian steel sector, it has it has entered into a pact to with world's steel major, Arcelor Mittal to acquire four of its European steel plants.

Now as per the latest reports, Liberty Steel USA will acquire another U.S. based steel company Keystone Consolidated Industries, Inc. (KCI) including all its subsidiaries, for USD 320 million in cash, less certain assumed liabilities. This purchase is expected to be completed by end of Dec'18.

KCI is one of the leading steel wire rod manufacturers in U.S. with an electric arc furnace capacity of 1.1 MnT. According to company's spokesperson, Liberty House's acquisition of KCI will increase its downstream facilities, create critical synergies, add strong management and provide better value and products for customers as the company advances towards its goal to enhance its U.S. steel business to 5 MnT per annum.

He also added that Keystone Steel and Wire, a division of Keystone Consolidated, has an over 100-year-old history in the steel and steel products business and a strong reputation for quality and performance.

In 2017, Liberty House has also acquired a mothballed wire rod plant from Arcelor Mittal which is now known as Liberty Steel Georgetown in South Carolina in U.S. The company restarted the plant in June this year and said it has been steadily ramping production to an estimated 400 kilotonne run rate by the first quarter of 2019, with further expansion to follow.

Now with KCI and Liberty Steel Georgetown together, Liberty House will have its consolidated business in North American business and will further strengthen it with additional acquisitions in future.

Liberty House's plan in U.S. includes a diverse mix of products of both long and flat steel products. The company said it is also actively pursuing additional acquisitions in flat products and further downstream capabilities to drive towards 5 MnT per annum of capacity by 2020.