US group swoops for manufacturer in £45m deal
A US group listed on the New York Stock Exchange has acquired a Chesterfield-based manufacturer in a £45m deal.
Pennsylvania-based Harsco Corporation has bought ALTEK Group, a specialist designer and manufacturer of equipment used for the efficient recycling of aluminium and aluminium waste material.
ALTEK is a market-leading manufacturer of several innovative technologies, including the dross press technology in which it is a world leader with over 550 units globally. This takes “dross”, a waste by-product from the aluminium smelting process, and presses it to immediately recover further aluminium while also capturing recoverable value (aluminium) for sale or re-processing.
The firm lists many of the world’s largest multi-site aluminium manufacturers as long-standing customers, including Hydro, Alcoa, Novelis, Arconic, Constellium, EGA, Rio Tinto, RUSAL and REAL ALLOY. ALTEK has over 500 global customers and exports to countries all over the world. Its top five markets are Europe, the USA, the Middle East, China and South East Asia.
Harsco acquired ALTEK, on a debt and cash free basis, for £45m plus an additional future contingent consideration subject to the future financial performance of ALTEK.
Harsco, a global engineered products and services company serving the worldwide steel, railway and energy sectors, said: “ALTEK is a profitable, capital-light business with attractive margins and is anticipated to generate robust investment returns. It is expected to be accretive to Harsco’s earnings per share and free cash flow in 2019, after considering acquisition accounting adjustments. Also, Harsco’s capital structure and financial flexibility remain strong following this transaction.”
Nick Grasberger, Harsco president and CEO, said: “ALTEK fits perfectly with our strategy of developing a premier environmental solutions platform, by acquiring technologies that expand our capabilities in managing industrial waste. We are optimistic about ALTEK’s growth potential within our Metals & Minerals business. This acquisition reflects our success in building a strong foundation in M&M and our confidence in the leadership team to execute against its operating and strategic growth priorities. ALTEK is M&M’s first acquisition in more than a decade, representing another step to accelerate our growth.”
Alan Peel, ALTEK managing director, added: “This acquisition is a very positive step forward for ALTEK, providing the company with a strong financial owner and industry leader which is committed to supporting ALTEK’s growth and innovation strategy. With Harsco’s extensive international presence and company infrastructure, Harsco will greatly enhance the ability of ALTEK to provide service and support to its international customer base. This will be particularly helpful as we commercialize our latest technology AluSalt around the world. With very similar and aligned values between the two companies, all of this will provide for a very exciting future for ALTEK with Harsco and the customers we serve within the aluminum industry.”
