German scrap metal company says the move will improve its balance sheet.
Scholz Holding GmbH has announced the sale of its aluminium and stainless steel businesses. The scrap metal company, based in Essingen, Germany, had earlier announced plans to sell off the businesses it considered noncore assets as a step in the process to realign and restructure the company.
The sale of the company's aluminum and stainless steel businesses follows Japan’s Toyota Tsusho Corp.'s purchase of a 40 percent stake in Scholz earlier this year.
Scholz sold its 60 percent stake in the aluminium trading business MMG Aluminium AG to MMC's existing management. The company also sold a 50 percent stake in ScholzAlu Stockach (SAS) to its management and the remainder to an unnamed firm.
Scholz also has sold its stainless steel group to an unidentified Indian investor. Scholz says the buyer expects to use the purchase to extend and strengthen its stainless steel business in Europe.
The deal for Scholz’s stainless steel business is expected to be completed by no later than the end of the third quarter of the year. The stainless steel division includes 460 people.
Following the sale of the divisions, Oliver Scholz, CEO of Scholz Holdings, said, “After the successful completion of the two disinvestments, we can now fully concentrate on our core businesses. In addition, the proceeds from the sale will make a significant contribution to such plans to reduce net debt of our group by 2015 to around 700 million euro.”