Global private equity firm ADV Partners has acquired Gerdau Steel India from the Brazilian conglomerate Gerdau, which has been looking to exit from nonstrategic markets and assets, for about USD 120 million.

ADV Partners, which has changed the name of acquired entity to Arjas Steel, will initially focus on clearing certain bottlenecks at the manufacturing facility located at Tadipatri in Andhra Pradesh and then augmenting capacities and scouting for new supply pacts.

The capacity will increase to 3.5 lakh tonne from the existing three lakh tonne after clearing bottlenecks. It will also look at options for further augmenting capacities. Arjas Steel is currently supplying steel to Hyundai Motors in India.

Gerdau SA had signed an agreement to sell its entire shareholding in its Spanish subsidiary Gerdau Hungria, which includes 100 percent of operations and assets in India, in favour of Blue Coral Investments Holdings and Mountain Peak Investment Holdings, owned and managed by ADV Partners and affiliates.