TowerBrook Capital Partners, a private equity firm, acquired a majority stake in Metallum Group from Alpha Private Equity. Metallum is a European scrap metal recycler, refiner, and trader. Banking sources said ysesterday that the deal was supported with debt financing worth EUR295 million.
In a statement, the companies said that TowerBrook Capital agreed to obtain a majority stake in Metallum and the transaction is likely to be closed in August. Alpha Private Equity purchased Metallum in 2007 and last year, tried to offer the metal processor to First Reserve. The buyout last year was ultimately canceled and, instead, Alpha executed a EUR260 million dividend recapitalisation.
The buyout by TowerBrook Capital Partners will be welcomed by financiers hoping to do transactions following a shortage of M&A this year.
BNP Paribas provided TowerBrook with loans to support its acquisition. Banks said that the the loan with BNP will be sold to institutional investors and other banks in a syndication process.
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