Aperam announced a strategic transaction to further strengthen its cost and ESG leadership position with the signature of a Share Purchase Agreement with Franz Haniel & Cie. Gmbh to acquire ELG for an Enterprise Value of EUR 357M (Equity value EUR 30M).
ELG is a global leader in collecting, trading, processing and recycling of stainless steel scrap and high-performance alloys, delivering 1.3 m tonnes of materials annually, employing ~1,300 FTEs in 52 locations in 18 countries. The transaction is expected to be completed during the H2 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 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 24M are expected within three years. The transaction is expected to be value creative from year 1 and executed in line with Aperam’s financial policy.