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French stainless steel producer Aperam has signed a purchase agreement with Franz Haniel & Cie. to acquire stainless steel scrap company ELG. This will provide backward integration and optimise costs, Aperam says. The acquisition, with a total value of €357 million ($433m) including €30m equity, will be completed later in 2021.
ELG processes 1.3 million tonnes/year of stainless steel scrap and high-performance alloys. The company’s Ebitda last year was €55m.
“The transaction will enable Aperam to improve its input mix and to expand into the supply of raw materials. Total minimum synergies of €24m are expected within three years … It will also accelerate Aperam’s expansion into geographies and industries that are complementary to its current portfolio,” says Aperam ceo Timoteo Di Maulo.
ELG will be run as an independent entity and continue to supply its clients, Kallanish notes.
Natalia Capra France