Emirates Global Aluminium (EGA) has announced the signing of a binding sale and purchase agreement to 100% acquire German aluminium recycling firm, Leichtmetall Aluminium Giesserei Hannover GmbH, a subsidiary of an investment fund managed by Quantum Capital Partners GmbH.
Leichtmetall is a European specialty foundry; its production includes hard alloys and larger diameter billets with high proportions of secondary aluminium.
This is EGA’s first major acquisition since the company was formed more than a decade ago through the merger of Dubai Aluminium and Emirates Aluminium.
It was shared that Leichtmetall uses renewable energy at its plant in Hannover, Germany, to produce up to 30 thousand tonnes per year of aluminium billets with secondary aluminium as some 80 per cent of input material.
It uses proprietary inductive melting technology, liquid metal treatment and casting processes to make high-quality specification products from scrap metal, used in demanding applications, with customers spanning across Europe, particularly in Germany, Italy and France.
The company’s production mainly consists of hard alloy billets up to 1,150 millimetres in diameter, with uses including manufacturing high load bearing extruded profiles and very large forged components.
Commenting on the acquisition, Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “This acquisition provides EGA a platform to develop a recycling business close to our customers in Europe, contributing to the emerging circular economy and building on our existing position as one of Press Release the biggest importers of primary aluminium on that continent. Leichtmetall will grow as part of EGA. The acquisition of Leichtmetall adds significant value to EGA and, alongside the recycling facility we are building in Abu Dhabi, is just the first step for EGA in capturing growth opportunities worldwide in low carbon primary and recycled aluminium, expanding our business and enabling us to reach net zero greenhouse gas emissions by 2050.”
Thomas Witte, Chief Executive Officer of Leichtmetall, added: “Becoming part of EGA, the largest ‘premium aluminium’ producer in the world, will unlock additional capital and resources for Leichtmetall to grow our business further, continue developing our technology, and strengthen our ability to partner with international customers in Europe and beyond. This transaction is great news for our existing customers and will help us secure new opportunities, while playing a key role in the growth of EGA’s wider recycling business.”
Steffen Görig, Chief Executive Officer of Quantum Capital Partners GmbH (QCP), said: “As a manager of specialty carve-out investment funds, our job is to enable high potential companies like Leichtmetall to develop and prosper. When Leichtmetall came under our wing 10 years ago, it was an overlooked operation with a limited customer base. Under Quantum Capital Partners ownership and Thomas Witte’s extraordinary leadership, Leichtmetall has developed into an innovative, sustainable supplier of speciality products that are highly-valued across multiple industries. Leichtmetall’s slogan is ‘making aluminium stronger’. With this transaction, we are making Leichtmetall stronger, trusting EGA to take the company to the next level.”
The transaction is expected to close during the first half of 2024, subject to obtaining regulatory approvals.
