Aperam completes the acquisition of ELG

Aperam announced the completion of the acquisition of ELG. The acquisition of ELG has received all necessary regulatory approvals and will further strengthen Aperam’s competitiveness and Environmental-Social-Governance leadership position in the industry.

ELG had been acquired for an Enterprise Value of EUR 357M (Equity value EUR 30M). The acquisition is based on a lockbox mechanism under which Aperam owns the economic value added to the ELG business. ELG will be fully consolidated into the Aperam Group under a new segment Recycling. ELG generated an adj. EBITDA of EUR 55M through the cycle, and is expected to generate adj. EBITDA of about EUR 65M in 2021.

Investing in sustainable recycling further improves Aperam’s environmental footprint and supports the company’s CO2 reduction targets. The acquisition enables Aperam to improve its input mix and to expand into the supply of raw materials. Total minimum synergies of EUR 24M are expected within three years with additional improvement potential. The acquisition is expected to be value creative from year 1 and executed in line with Aperam’s financial policy.

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