TowerBrook Acquires European Recycler

The London-based private equity firm TowerBrook Capital Partners L.P., has reported a significant investment in Metallum Holding S.A., a European metal refining and recycling company.

Metallum is split into two divisions: Metallo Chimique NV, headquartered in Belgium, operates in the copper and tin secondary refining market, with facilities in Belgium, Spain and Italy; and Metallum Group (Schweiz) AG, headquartered in Switzerland, operates metal scrap handling and recycling facilities in Europe, the Middle East and Asia.

According to TowerBrook, Metallum has significantly invested in its asset base under the leadership of Patrick Verschelde and Leo Steenbergen, chairman and group CFO of Metallum Holding S.A., respectively.

“TowerBrook has a deep understanding of Metallum’s distinctive business and economic model and its unique positioning in the scrap metal industry value chain. They are keen to capitalize on the existing strength of the business by deploying capital and supporting the company in a market that presents considerable growth opportunities,” says Verschelde.

“We are delighted to partner with the management team of Metallum. From the collection of low grade scrap across its recycling yards to its unique refining capabilities, we see a number of growth initiatives while taking exposure to an attractive asset class,” says Patrick Smulders, TowerBrook’s managing director.

“Our relationship with Metallum’s management team and the healthy long-term market fundamentals associated with a strong business case underpinned our investment decision. Additional capacity, continuing improvement in the refining process and M&A consolidation in the recycling yards will allow us to capitalize on the existing merits of the company,” says Karim Saddi, TowerBrook’s managing director.

The transaction is expected to close in August 2013.