An “Aluminating” deal
The deal is worth an initial £45 million, with additional contingent consideration subject to the future financial performance of ALTEK.
Based in Chesterfield (UK) and Malvern PA (USA), ALTEK manufactures market leading products that enable aluminium producers and recyclers to manage and efficiently extract value from critical waste streams, reduce waste generation, and improve operating productivity. Its products are used in more than 60 countries throughout the world and include aluminium dross and scrap processing systems and its latest innovation, AluSalt™ – a breakthrough technology that converts salt slag waste into valuable products.
Pennsylvania headquartered Harsco is a multinational industrial services group with a market capitalisation of c.$2bn. ALTEK will join Harsco’s metals and minerals division which provides material processing and environmental services to the global steel and metals industries.
Alan Peel, ALTEK Managing Director, said: “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. We really enjoyed working with Don Gray and Tim Brind from BHP Corporate Finance. This was a very significant transaction for us and BHP’s wise counsel and coolness under pressure were fundamental to getting the deal done. Throughout the highs and lows of the process we could always rely on Don and Tim to be there to provide advice around the clock.”
Don Gray, Partner, added “The acquisition of ALTEK is a great example of a UK SME developing a disruptive technology that attracts strategic multi-national buyers. It also demonstrates that after more than 100 years since the development of stainless steel, Sheffield City Region businesses still lead the way in innovation in the metals sector. The deal is recognition of the huge amount of hard work that Alan and his team have put in over the years and we wish them the very best of luck on this new stage of the ALTEK journey”
The Altek transaction is one of a number of our current deals where we have engaged with overseas buyers highlighting that notwithstanding Brexit concerns, appetite remains strong for high quality UK businesses. We look forward to bringing you news of more successful completions in the near future.