SYNTAGMA CAPITAL enters into exclusive negotiations, to acquire Erasteel, the high-speed steels and recycling division of Eramet S.A. (Euronext Paris: ERA)

Rhea-AI Summary

Syntagma Capital has entered exclusive negotiations to acquire Erasteel, a leader in high-speed steels and metal recycling in Europe, employing around 850 people across six sites in France, Sweden, and China. In 2022, Erasteel generated approximately €275m in revenue, primarily serving the aerospace, automotive, and industrial sectors. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to complete by the end of Q2 2023. Syntagma aims to leverage its global expertise to enhance Erasteel's growth and recycling division in France.

Positive

• Syntagma Capital expands portfolio with the acquisition of Erasteel, enhancing its position in high-speed steel and metal recycling sectors.
• Erasteel's 2022 revenue of approximately €275m indicates strong market presence and growth potential.
• Syntagma plans to accelerate the development of Erasteel's recycling division, potentially boosting revenue and sustainability efforts.

Negative

• Acquisition is subject to regulatory approvals, which could delay the transaction completion.
• Challenges in integrating Erasteel's operations with Syntagma could arise, impacting overall performance.

BRUSSELS--(BUSINESS WIRE)-- Syntagma Capital today announces that it has entered into exclusive negotiations with Eramet, to acquire Erasteel (https://www.erasteel.com). The business is a global leader in the conventional and powder metallurgy of high-speed steels used for high performance machining, drilling and cutting tools. In addition, Erasteel has unique metal recycling capabilities in Europe, offering sustainable solutions for the recovery of batteries, catalysts and metals. The business employs ca. 850 employees across its six sites in France, Sweden, and China. In 2022, Erasteel generated ca. €275m in revenues serving primarily the aerospace, automotive and industrial sectors.

The proposed transaction, which will be submitted to the required information and consultation of works councils, is subject to definitive agreement which will include the fulfillment of customary closing conditions, including regulatory approvals, and would be expected to be completed by the end of the first half of 2023.

“Despite a very challenging M&A market, Erasteel represents our second deal in 2023 and our third deal in the last 6 months, reflecting our ability to provide sellers with speed and certainty. We are excited by the prospect to further develop Erasteel on a global basis. Erasteel is also our third carve out and further strengthens our position as a Partner of choice in Europe for complex carve-out” said Syntagma Managing Partner Sebastien Kiekert Le Moult.

“We intend to leverage our global experience in metals and Erasteel’s extensive R&D and technical know-how, global presence and strong customer relationships to further enhance its growth, both organically and through targeted M&A. We also intend to accelerate the development of the recycling division of Erasteel in France” said Syntagma Partner Frank Coenen.

Syntagma’s team involved in the transaction included Sebastien Kiekert Le Moult (Managing Partner), Frank Coenen (Partner), Benjamin Dahan (Partner), Fabio Yamasaki (Principal), Gabriele Lo Monaco (Senior Associate).

Syntagma was advised by Willkie Farr Gallagher (legal counsel), Lincoln International (M&A advisor), PwC (financial adviser), and Advention Business Partners (commercial and strategy advisor).

About Syntagma Capital

Syntagma invests in companies that can benefit from hands-on operational expertise to accelerate growth and improve performance for all stakeholders. We are true operators with experience working in and managing companies on a global scale, leveraging our in-house resources to develop successful strategies, execute them to realize their full potential and create sustainable long-term value. Syntagma invests and operates companies in a broad range of industries with a specific focus on the material, chemical, industrial and business services markets and including manufacturing, distribution, transportation and logistics, equipment rental, metals services and other industries. Syntagma, as signatory of the UN PRI, is committed to high ESG standards across all its investments and is based in Brussels, Belgium. For more information, please visit: https://syntagmacapital.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005754/en/

Marie Ciparisse

Phone: +32 (0)2 315 70 12

Email mciparisse@syntagmacapital.com

Source: Syntagma Capital

FAQ

What is the purpose of Syntagma's acquisition of Erasteel?

The acquisition aims to expand Syntagma's portfolio in high-speed steels and enhance the growth of Erasteel, particularly in its recycling division.

When is the expected completion date for the Erasteel acquisition?

The acquisition is expected to be completed by the end of the first half of 2023, pending regulatory approvals.

What revenue did Erasteel generate in 2022?

Erasteel generated approximately €275 million in revenue in 2022.

What are the key sectors served by Erasteel?

Erasteel primarily serves the aerospace, automotive, and industrial sectors.

How many employees does Erasteel have?

Erasteel employs around 850 people across its six sites.