-6,68%ELG
On December 27, 2021, Aperam announced the completion of the acquisition of ELG, a global leader in stainless steel and superalloys recycling.
Placing the circular economy at the core of Aperam’s growth strategy:
|
ELG is a global leader in collecting, trading, processing and recycling of stainless steel scrap and high performance alloys, delivering ~1.2 m tonnes of materials annually, employing ~1,200 FTEs in 51 locations in 20 countries.
ELG had been acquired for an Enterprise Value of EUR 357 million (Equity value EUR 30 million) valued 31.12.2020. The acquisition is based on a lockbox mechanism under which Aperam owns the economic value added to the ELG business as from 01 January 2021. ELG will be fully consolidated into the Aperam Group as from 31.12.2021 under a new segment Recycling. ELG generated an adj. EBITDA of EUR55 million through the cycle, and is expected to generate adj. EBITDA of about EUR 65 million in 2021.
Investing in sustainable recycling further improves Aperam’s leading environmental footprint and supports the company’s CO2 reduction targets. The acquisition enables Aperam to improve its input mix and to expand into the supply of raw materials. Total minimum synergies of EUR 24 million are expected within three years with additional improvement potential. Combined with phase 4 of the Leadership Journey, Aperam will achieve its next level of competitive excellence. The acquisition is expected to be value creative from year 1 and executed in line with Aperam’s financial policy.