Aperam signs agreement to acquire ELG for an enterprise value of EUR 357 million

The transaction will enable Aperam to improve its input mix and to expand into the supply of raw materials.

LUXEMBOURG: Aperam (AMS: APAM) has signed a Share Purchase Agreement with Franz Haniel & Cie. Gmbh to acquire ELG for an enterprise value of EUR 357 million.

ELG is a global leader in collecting, trading, processing and recycling of stainless steel scrap and high performance alloys, delivering 1.3m tonnes of materials annually, employing 1,300 FTEs in 52 locations in 18 countries.

ELG generated an adj. EBITDA of EUR55 million through the cycle. The acquisition is subject to customary regulatory approvals. The transaction is expected to be completed during the second half of 2021.

The acquisition of ELG will put Aperam at the core of the circular economy and enable capturing value in the global recycling industry. Investing in sustainable recycling will further improve Aperam’s leading environmental footprint and support the company’s CO2 reduction targets.

The transaction will enable Aperam to improve its input mix and to expand into the supply of raw materials. Total minimum synergies of EUR 24 million are expected within three years. Combined with phase 4 of the Leadership Journey, Aperam will achieve its next level of competitive excellence. The transaction is expected to be value creative from year 1 and executed in line with Aperam’s financial policy.

Mr. Timoteo Di Maulo, Chief Executive Officer of Aperam, commented: “The acquisition of ELG’s recycling business will further transform and strengthen Aperam. The combination will benefit our stakeholders by creating value in the recycling industry. It will also accelerate Aperam’s expansion into geographies and industries that are complementary to its current portfolio. Aperam intends to operate ELG as a fully separate and independent company. ELG will continue to serve all of its customers in their best interest.”

Franz Haniel & Cie. GmbH is a 100 percent family-owned company which has been headquartered in Duisburg since it was founded in 1756. It manages a portfolio of independent businesses with the goal to make all investments “enkelfähig” and create value for generations. Currently, the Haniel portfolio comprises eight business units: BauWatch, BekaertDeslee, CWS, ELG, EMMA, Optimar, ROVEMA and TAKKT. In addition, there is also a financial investment in CECONOMY. www.haniel.de/en

Aperam (AMS: APAM) is a global player in stainless, electrical and specialty steel, with customers in over 40 countries. The business is organised in three primary operating segments: Stainless & Electrical Steel, Services & Solutions and Alloys & Specialties.

Aperam (AMS: APAM) has a flat Stainless and Electrical steel capacity of 2.5 million tonnes in Brazil and Europe and is a leader in high value specialty products. In addition to its industrial network, spread over six production facilities in Brazil, Belgium and France, Aperam has a highly integrated distribution, processing and services network and a unique capability to produce stainless and special steels from low cost biomass (charcoal made from its own FSC-certified forestry).

In 2020, Aperam had sales of EUR 3,624 million and steel shipments of 1.68 million tonnes.

Aperam SA AMS: APAM share price

45.91 EUR +1.69 (3.82%)

6 May, 5:35 pm GMT+2 · Disclaimer

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