Metso Outotec has signed an agreement to divest its Waste Recycling business line to family-owned investment company Ahlström Capital.
Metso Outotec announced in October 2020 its decision to divest its Recycling business, which comprises of the waste recycling and metal recycling business lines, based on the company’s strategic focus on the aggregates and mining industries.
The parties declined to disclose the value of the transaction, which is expected to close during the fourth quarter of 2021.
The divestment will have a minor positive impact on Metso Outotec’s financial results. The Waste Recycling business has been reported as part of discontinued operations in Metso Outotec’s financial statements. Metso Outotec continues with the divestment process of its Metals Recycling business line.
“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,” says Uffe Hansen, who is heading the Waste Recycling Business.
“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 of 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.”
The Waste Recycling business will be operating under the M&J brand, and its headquarters will be in Horsens, Denmark. All the current employees of the business, numbering around 120 people, will transfer to the new company. The net sales of the business in 2020 totalled some €50M.