Metso to sell recycling business to Ahlström Capital
By Leila Steed16 July 2021
Aggregates and mining equipment specialist Metso Outotec is to sell its Waste Recycling business to Finnish investment firm Ahlström Capital, for an undisclosed amount.
The decision to sell the business was made in October of last year and is a strategic move designed to help streamline activities and improve its profitability, following Metso Outotec’s formation after the demerger of Metso Corporation.
It comes as Metso Outotec continues to both expand its presence in China and strengthen its operations in the mining equipment sector.
Metso Outotec said its divestment of the business area, which supplies both products and services to the waste recycling sector, does not include its Metal Recycling business. However, the company is still moving ahead with plans to divest the division.
Due to be completed in the fourth quarter of 2021, Metso said the demerger deal would have a “minor positive impact” on its financial results, as the division is reported under “discontinued operations” on its financial statements.
The waste recycling business, which last year reported net sales of €50 million (US$11.7 million), and its 120 employees will now take the name of Ahlström’s M&J brand.
Ahlström said: “The new industrial acquisition broadens Ahlström Capital’s portfolio into an attractive growth market and offers sustainable value creation opportunities.”
The acquisition will also see the recycling business relocate its headquarters from Helsinki in Finland to Horsens in Denmark.
Uffe Hansen, President of the Waste Recycling Business Area at Metso Outotec, said: “We are very pleased that we have found a new owner for our business, whose strategic thinking and ambitions are so well aligned with ours.
“As a standalone company with a sole focus on waste recycling, we will be more agile and customer centric in order to further exploit growth opportunities.”
Lasse Heinonen, president and CEO at Ahlström Capital, said: “The Waste Recycling business, M&J, has a proven track record with a strong growth profile, in an attractive market.
“The business is well positioned to help drive sustainable development with its premium brand offering, robust operations and skilled personnel. I believe that Ahlström Capital as an owner will bring further focus on and resources for growth initiatives and support the standalone business to reach its full potential.”