Aurubis to acquire Metallo Group

Aurubis to acquire Metallo Group

Purchase will strengthen Aurubis’ recycling portfolio.

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In pursuit of its recycling strategy, Aurubis AG, Hamburg, Germany, signed a share purchase agreement May 22 for the acquisition of the Belgian-Spanish Metallo Group.

Metallo Holdings is owned by funds managed by TowerBrook Capital Partners, a leading transatlantic investment firm. Metallo is a recycling and refining company that specializes in recovering nonferrous metals by recycling materials with lower metal content. The company employs roughly 530 people at locations in Belgium and Spain. In fiscal 2018, Metallo generated revenue of approximately 1 billion euros, or $1.12 billion. The share purchase agreement stipulates a purchase price of 380 million euros, or $426 million, which will be financed without a capital increase, according to a press release from Aurubis. 

The acquisition of Metallo, with its attractive growth potential, strengthens Aurubis’ metal portfolio, especially in the key metals of copper, nickel, tin, zinc and lead, the company says. The Metallo Group complements the investment project Future Complex Metallurgy (FCM), with which Aurubis will process a higher volume of complex input materials.

Roland Harings, deputy chairman of the executive board of Aurubis AG, says, “I am pleased to be able to announce this positive news shortly after joining Aurubis. In the course of taking over my new duties, I was already able to deal intensively with Metallo and, in close cooperation with my colleagues on the executive board and the project team, I was able to implement the decision to acquire it promptly as an important step in the implementation of the recycling strategy.”

Jürgen Schachler, who is leaving Aurubis at the end of June, adds, “Due to megatrends such as smart homes, e-mobility, digitalization and renewable energies, both the quantity and the complexity of secondary raw materials will increase significantly. Metallo’s processing expertise and specific metallurgical know-how provide an excellent complement to Aurubis’ own strengths.”

Metallo Belgium, based in Beerse, was founded in 1919. In the 1960s, the company developed processes to recycle copper, tin and lead from more complex raw materials with low metal contents and fostered innovation to invest in sustainable technologies to strengthen its zero-waste strategy. Metallo Spain, formerly called Elmet, was founded in Berango (in the province of Biscay) in 1991.

Patrick Verschelde, executive chairman of the board of directors of Metallo, says, “We have been a reliable business partner for 100 years. We are dedicated to developing and creating sustainable processes and strategies, and we have been a longstanding business partner of Aurubis. We are pleased to now become part of the Aurubis family, and we look forward to successfully working on sustainable solutions together as one team in the future.”

The transaction is subject to approval by the relevant antitrust authorities and is expected to take place by the end of the year, Aurubis notes in the news release.