#Mexico #Guadalajara #Grupo Simec #Votorantim #Acerbrag

Grupo Simec Expands Its Presence in the Region through Acerbrag Acquisition

In a significant move aimed at bolstering its position in the steel industry, Grupo Simec, S.A.B. de C.V. (NYSE: SIM) has announced the successful agreement to acquire Acerbrag, S.A., a notable steel producer based in Bragado, Buenos Aires, Argentina. This acquisition was made from Votorantim, S.A. and represents a pivotal step in Grupo Simec's expansion strategy across South America.

Strategic Acquisition for Growth

Grupo Simec, known for its robust growth and operational efficiency, has decided to utilize its own resources to acquire 100% of the share capital of Acerbrag. This move aligns with Simec's long-term plans to enhance its market presence and operational capabilities in a region that has been increasingly vital to its overall growth strategy.

Acerbrag has over sixty years of experience in the production of long steel products and boasts modern facilities that encompass both steelmaking and rolling operations. Their products primarily cater to critical sectors such as industrial, construction, and agribusiness, which are essential for Argentina's economy. The integration of Acerbrag into Grupo Simec is expected to generate substantial operational and commercial synergies, ultimately boosting the combined entity's competitiveness in both local and international markets.

Strengthening Market Position

With this acquisition, Grupo Simec aims to significantly strengthen its geographic footprint in South America while increasing its production capacity. The move is projected to advance Simec's efforts to continue focusing on operational efficiency as well as maintaining financial discipline in managing its expanding portfolio.

The integration of Acerbrag enhances Grupo Simec’s capabilities, allowing the company to streamline operations across various segments and leverage overlapping markets in Argentina. Furthermore, the acquisition is anticipated to support the company in achieving better economies of scale, which is crucial in the competitive steel industry.

Regulatory Approvals Pending

It is important to note that the completion of the acquisition is subject to the satisfaction of customary closing conditions, including obtaining the necessary regulatory approvals. Grupo Simec is committed to navigating this process swiftly to facilitate a smooth transition and operational integration.

As Grupo Simec moves forward with this acquisition, the company remains focused on evolving its business model to adapt to market demands while reinforcing its strategic position in the steel sector.

For more information or media inquiries, contact:
José Luis Tinajero
Mario Moreno Cortez
Grupo Simec, S.A.B. de C.V.
Calzada Lázaro Cárdenas 601
Guadalajara, Jalisco, México
Phone: 52 55 1165 1028
Phone: 52 33 3770 6734

As Grupo Simec embarks on this new chapter with Acerbrag, it sets the stage for future growth and success in the South American steel market, paving the way for enhanced operational capabilities and market reach. This acquisition underscores the company's commitment to meeting the evolving needs of its extensive customer base and solidifying its reputation as a leader in the industry.