WireCo Acquires Grupo Oliveira Sá

WireCo WorldGroup Inc., Kansas City, Mo., has acquired Portuguese manufacturer of high-performance synthetic ropes Grupo Oliveira Sá, and assets comprising its worldwide business. WireCo also plans to maintain Oliveira’s manufacturing operations in Maia, and Paredes, Portugal, and to expand the utilization of both facilities.

Oliveira produces high-performance ropes for mooring line and towing applications, as well as high-performance wire ropes for the crane and fishing markets. The company’s existing management team is expected to remain in place. WireCo’s planned expansion would require investment in plant and equipment and create the potential for additional jobs.

“The Oliveira acquisition is the continuation of our strategy to strengthen our leadership in our core markets, to bring access to new geographic and end markets, and to expand our synthetics capabilities,” said Ira Glazer, WireCo CEO. “Oliveira serves marine markets that are highly complementary to our existing offerings, including offshore oil and gas and fishing. In combination with our December 2009 merger with Phillystran, we believe we will now offer the market a full package of technologically advanced synthetic ropes. In addition, Oliveira has a strong position in the global wire-rope aftermarket for cranes, which we believe will further enhance our leadership in that segment.”

WireCo has completed multiple acquisitions in recent years to enhance its global market position in wire and synthetic ropes, including Phillystran, CASAR and Wireline Works in 2007, and Aceros Camesa in 2005. The company also has a joint venture with Wuhan Iron and Steel to build the world’s most modern wire-rope manufacturing facility in China, which started production in 2009.

WireCo is owned by investment funds managed by Paine and Partners, LLC, the San Francisco and New York-based private equity firm. The firm played a key role in facilitating the acquisition and arranging the financing for the transaction.