Metso Outotec to divest waste recycling business to Ahlström Capital
Finland-headed technology major Metso Outotec Corporation has announced that it has signed an agreement to divest its Waste Recycling business line to Ahlström Capital, a family-owned investment company. The closing of the transaction, the value of which has not been disclosed, is expected to take place during the fourth quarter of 2021.
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 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. 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, said Uffe Hansen, who is heading the Waste Recycling Business.
The Waste Recycling business will be operating under the M&J brand, and its headquarters will be in Horsens, Denmark. All current employees of the business, approximately 120 persons, will transfer to the new company in connection with the transaction. The net sales of the business in 2020 totaled some EUR 50 million.
Ahlström Capital focuses its investment activity on industrial companies, real estate, and forests and combines the best features of an industrial company, an investment company, and a family-owned company. Ahlström Capital invests assets that the Ahlström family has accumulated during 170 years and holds significant financial resources as one of the largest investment companies in Finland.
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, said Lasse Heinonen, President, and CEO, at Ahlström Capital.