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TowerBrook buying Metallum for scrap, refining presence

Keywords: Tags  Towerbrook Capital Partners, Metallum Holding SA, Groupe Alpha, recycling, secondary refining, copper, tin, acquisition Rey Mashayekhi

NEW YORK — Private equity firm TowerBrook Capital Partners LP has signed a deal to acquire a majority stake in Metallum Holding SA, giving it exposure to the European metal refining and recycling markets.

TowerBrook, headquartered in New York and London, said it had been in talks to acquire Metallum since late 2012. The deal includes both Metallum divisions: Belgium-based Metallo Chimique NV, which specializes in copper and tin secondary refining, and Switzerland-based Metallum Group (Schweiz) AG, which operates scrap handling and recycling facilities in Europe, Asia and the Middle East.

The acquisition from European private equity firm Groupe Alpha is expected to be completed in August. The terms of the deal were not disclosed.

TowerBrook cited Metallum’s "established presence in the European market" and "unique knowledge of low-grade ferrous and nonferrous scrap recycling" as factors driving its decision to invest.

"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," TowerBrook managing director Karim Saddi said in a statement.

Metallum chairman Patrick Verschelde said that TowerBrook’s move will give it a foothold in an expanding market. "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," he said in a statement.

Metallum could not be reached for comment.

A spokesman for TowerBrook, which owns a stake in Shale-Inland Holdings LLC, said it was the company’s first venture into the European metals industry.

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