16.08.2007

WRCA ropes in Casar

Wire Rope Corporation of America, (WRCA), one of the leading producers and distributors of specialty wire ropes, has announced that it has entered into a definitive agreement to acquire the entire business of Casar Drahtseilwerk Saar.

The company says that it plans to use Casar as the base for all of its European operations, this will lead to new investment in plant and equipment as well as the potential for additional jobs in Kirkel. The company also plans to use Casar as a base for major expansion in its export activities.

The transaction is subject to normal closing conditions and is expected to close by the end of August.

Based in Kirkel, Germany, was established in 1948 as Câblerie Sarroise Joseph ‘Denis’ Verreet, a distinguished Belgian engineer, to develop and manufacture modern wire ropes, introducing the first eight strand rope in 1949. In 1974 he was joined by his son Roland after he completed his engineering studdies. In the following years the company grew rapidly as it developed and invented a series of high performance wire ropes for cranes, in response to the growing demand for high capacity mobile crane, supplying companies such as Demag, Gottwald and Krupp. In the mid 1980s the comapny was acquired by international investors, who have now chosen to exit the business.

WCRA chief executive Ira Glazer, said: “During the past three years, our company has followed a growth strategy to expand WRCA’s global manufacturing presence and further diversify our end markets and geographic mix. The Casar acquisition accomplishes another leg of this strategy by firmly establishing WRCA in Europe. Casar is one of the finest wire rope companies in the world and a leader in quality and technology. We plan to have a seamless transition of Casar’s customers and employees as we carry forward Casar’s tradition of engineering excellence. Finally, I would like to thank the Verreet family for their support in completing this transaction.”

This latest acquisition comes on the tail of the purchases of Aceros Camesa in Mexico and Wireline Works in Canada by WRCA during 2006. The company is based in St Jospeh Missouri. WRCA has also formed a joint venture with Wuhan Iron and Steel in China to build What it claims will be the world’s most modern wire rope manufacturing facility, scheduled to open in April 2008.

WRCA is owned by private equity company Fox Paine Management III, of San Francisco and New York. Fox Paine III arranged financing for the Casar acquisition.

Troy Thacker, managing director of Fox Paine, said: "We are proud to continue to support WRCA in its strategy of building the premier global manufacturer of lifting and specialty wire rope and electromechanical cable.