QCP Quantum Capital Partners (‘QCP’), manager of investment funds based in Munich, Germany, specializing in complex corporate carve-outs and transformations has announced the signing of a binding sale agreement of Leichtmetall Aluminium Giesserei Hannover GmbH (‘Leichtmetall’), a German aluminium producer of high-strength recycled aluminum to Emirates Global Aluminium (‘EGA’).
The transaction is expected to close during the first half of 2024, subject to obtaining regulatory ap-provals.
Leichtmetall is a German specialty foundry, producing standard and large diameter hard alloyed alu-minium billets, utilizing a high share of recycled aluminium as input material. The company uses re-newable energy to produce up to 30,000 tonnes of aluminium billets with diameters of up to 1,150 mil-limeters per year. Leichtmetall uses proprietary inductive melting technology, liquid metal treatment and casting processes developed over more than four decades on site to manufacture very high qual-ity and specialized products which are used in demanding applications. Leichtmetall has customers across Europe, and particularly in Germany, Italy, and France.
Funds managed by QCP acquired the company in 2014 as an underperforming asset. QCP identified Leichtmetall as a company with significant growth potential. With QCP’s support and the successful leadership of the company‘s CEO, Mr. Thomas Witte, Leichtmetall transformed into a standalone com-pany, performing an extensive investment program and is now well-positioned for its next growth phase. During the last ten years, Leichtmetall increased its staff with 50%, tripled its revenues and in-creased operating profits by 1,500%. The recent investment into the production of large diameter billets (with diameters above 1150mm) is expected to enable further significant growth opportunities for the company.
The landmark transaction is EGA’s first major acquisition since EGA was formed through the merger of Dubai Aluminium and Emirates Aluminium a decade ago. Today EGA is the world’s biggest inte-grated ‘premium aluminium’ producer with operations from bauxite mining to the production of cast pri-mary aluminium. In 2023, EGA sold 2.75 million tonnes of cast metal having more than 400 customers in over 50 countries. In 2023, value-added products accounted for 76% of EGA’s cast metal sales. EGA’s aluminium is primarily used in the construction, automotive, packaging, aerospace and elec-tronics industries.
Thomas Witte, Chief Executive Officer of Leichtmetall, said: “Becoming part of EGA, the largest ‘premium aluminium’ producer in the world, will unlock additional capital and resources for Leichtmetall to grow our business further, continue developing our technology, and strengthen our ability to partner with international customers in Europe and beyond. This transaction is great news for our existing cus-tomers and will help us secure new opportunities, while playing a key role in the growth of EGA’s wider recycling business.”
Steffen Görig, Chief Executive Officer of QCP Quantum Capital Partners GmbH (QCP), said: “As a manager of specialty carve-out investment funds, our job is to enable high potential companies like Leichtmetall to develop and prosper. When Leichtmetall came under our wing 10 years ago, it was an overlooked operation with a limited customer base. Under QCP ownership and Thomas Witte’s ex-traordinary leadership, Leichtmetall has developed into an innovative, sustainable supplier of speciality products that are highly-valued across multiple industries. Leichtmetall’s slogan is ‘making aluminium stronger’. With this transaction, we are making Leichtmetall stronger, trusting EGA to take the com-pany to the next level.”
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said: “This ac-quisition provides EGA a platform to develop a recycling business close to our customers in Europe, contributing to the emerging circular economy and building on our existing position as one of the big-gest importers of primary aluminium on that continent. Leichtmetall will grow as part of EGA. The ac-quisition of Leichtmetall adds significant value to EGA and, alongside the recycling facility we are building in Abu Dhabi, is just the first step for EGA in capturing growth opportunities worldwide in low carbon primary and recycled aluminium, expanding our business and enabling us to reach net zero greenhouse gas emissions by 2050.”
Adel Abubakar, Chief Marketing Officer of Emirates Global Aluminium, said: “The acquisition of Leichtmetall greatly enhances our ability to meet European high-end aluminium demand, operationally
and commercially, as well as contributing to our carbon emissions reduction aspirations. Leichtme-tall and the 170 thousand tonnes per year aluminium recycling facility we are building in the UAE are together a strong combination which will be part of shaping the future EGA, enabling us to support our global customers in meeting their future carbon intensity and properties requirements for their metal.”
QCP was assisted by Houlihan Lokey with a team lead by Pierre Gaulier and Fei He as M&A sellside advisor and Dr. Thorsten Steinhaus from TRACC Legal for corporate and legal M&A aspects of the transaction.
QCP Quantum Capital Partners
QCP is a manager of funds and has, for more than 15 years, successfully invests in complex corporate carve-outs and transformational projects. QCP’s operations are managed through its Munich headquarters, as well as its of-fices in Hamburg and Madrid. Businesses owned by the funds managed by QCP represent a portfolio of 9 compa-nies and a consolidated annual revenue of approximately EUR 1bn and 3,000 employees across Europe as of December 2023.
The funds managed by QCP acquire companies with significant potential for operational improvements, growth, and development. As active and responsible owners, they work closely with local management to ensure that portfolio companies implement sustainable development and turnaround plans, as well as continuous growth strategies. QCP’s managed funds pursue a long-term investment strategy, which aims at continuity and a value-increasing development of the acquired businesses.
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