Industry
€295m
Belgium BE
Switzerland CH

Scope of intervention

Sycomore Corporate Finance acted as exclusive sell-side advisor to Alpha Group and exclusive financial advisor to Metallum Holding’s Management on the disposal of Metallum to Towerbrook

Date of closing

July 2013
Towerbrook has acquired Metallum Holding from Alpha Group.

The acquisition is in line with TowerBrook’s investment strategy to invest in the sector and will help in the future growth and development of Metallum.

Metallum is a strategic business with an established presence in the European market with unique knowledge of low grade ferrous and non–ferrous scrap recycling. TowerBrook has been in talks with the Company since late 2012 and looks forward to deploying its expertise to support the management team in the next phase of the Company’s evolution.

The Company has significantly invested in its asset base under the leadership of Patrick Verschelde and Leo Steenbergen, respectively Chairman and group CFO of Metallum Holding.

Metallum recycles, processes and sells about 1,000,000 tonnes of metals annually. Of these, approximately 60% fall in the copper sector, 20% in the aluminium sector and 20% are iron and other metals. In Europe, Metallum Holding is the market leader in the non-ferrous metals sector.

Rationale

  • Support Metallum in its international development and capitalize on growth opportunities, both organically and through acquisitions
  • Benefit from the continuing improvement in the refining process and M&A consolidation in the recycling yards to strengthen and expand Metallum’s market position

Metallum at a glance

Founded in 2007 and headquartered in Luxembourg, Metallum Holding controls Metallo-Chimique, an innovative refiner of metals, able to produce high-quality metals (incl. copper, tin, lead and nickel) solely using inferior, complex and impure secondary raw materials, as well as Metallum Group, a leading international trader of primary and secondary metals and their residues, also active in the processing of metal, iron and electronic scrap and the provision of comprehensive recycling services. In 2012, the Company generated c.€1.7bn of revenues and counted over 1,000 employees.

Alpha Group at a glance

Founded in 1985, Alpha Group is an independent Pan-European Private Equity firm, specialized in leveraged buyouts of mid-sized companies and in investments in mature and middle market companies with €2.bn under management. Since inception, Alpha Group has completed over 130 transactions in Continental Europe, in all sectors and it prefers to invest between €50m to €150m per transaction in companies having enterprise values between €100m and €500m with minimum revenues of €30m.

Towerbrook at a glance

Founded in 2001, Towerbrook Capital is an investment firm specializing in direct and fund of funds investments. Within direct, it specializes in investments in growth capital, leveraged buy-outs, leveraged build-ups, and distressed situations financing in middle market companies. The firm typically invests between $50m and $200m in companies with enterprise values between $200m and $1.0bn in Europe and North America.