TowerBrook Capital Partners Announces Majority Investment in Metallum Holding

July 05, 2013

TowerBrook Capital Partners L.P. (“TowerBrook”) has made a majority investment in Metallum Holding S.A. (the “Company” or ”Metallum”), a leading European metal refining and recycling company.

Metallum comprises two companies: Metallo Chimique NV, headquartered in Belgium, a market leader in the European copper and tin secondary refining market, and Metallum Group (Schweiz) AG, headquartered in Switzerland, a leading European metal scrap recycling group, operating metal scrap handling and recycling facilities in several European countries as well as in the Middle East and Asia. 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 S.A.

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.

Patrick Verschelde, Chairman, commented:

“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 capitalise on the existing strength of the business by deploying capital and supporting the Company in a market that presents considerable growth opportunities.”

Patrick Smulders, TowerBrook Managing Director, said:

“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.”

Karim Saddi, TowerBrook Managing Director, said:

“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 capitalise on the existing merits of the Company.”

The transaction is expected to close in August 2013.