Private Equity Firm Acquiring Metallum Holding

The private equity firm First Reserve Corp. has reached an agreement to acquire the assets of Metallum Holdings S.A., a Europe-based metal refining and recycling company. The total cost of the transaction is 670 million euros (US$968 million).

Metallum Group, headquartered in Luxembourg, consists of two businesses: Metallo, a copper and tin refining business that processes low grade scrap and monetizes related impurities; and Metallum, a European ferrous and non-ferrous scrap recycling and trading business.

Metallum says that it hold a 20 percent share in the market for traded copper volumes in Europe due to its platform of 14 scrap yards and long-term relationships with a network of around 350 merchants. In a release, Metallum says its strong position in metal recycling should leave the company well positioned to capitalize on tougher E.U. environmental regulations.

"Metallum Group affords First Reserve a unique opportunity to gain exposure to the tight copper market without taking the single asset, geological, development or country risk that is typically associated with a business of this size,” says Alex Williams, director of First Reserve. “We are excited to support a proven management team to execute on their strategy to increase capacity, make operational improvements and implement their acquisition plan. The company's technological edge in recycling ultra low grade scrap back into copper adds further strength to the platform and underpins its competitive advantage."

Patrick Verschelde, executive chairman of Metallum Group, says, "We welcome the partnership with First Reserve, a first class private equity firm. The firm's deep knowledge of the energy industry and its strong contacts in the metals sector will be a great asset to us as we look to execute our growth strategy and development plan."