Finnish company Metso Outotec says it has signed an agreement to divest its Waste Recycling business line to Ahlström Capital, a family-owned investment company. In October of last year, Metso Outotec announced it would divest its Recycling business, which includes the waste recycling and metal recycling business lines, based on the company’s strategic focus on the aggregates and mining industries. The sale to Ahlström Capital is expected to take place during the fourth quarter of 2021, according to a news release from Metso Outotec.
The value of the transaction will not be disclosed; however, Metso Outotec says the sale will have a minor positive impact on its financial results. The company says it continues with its plans to divest its Metals Recycling business line.
The Waste Recycling business will operate under the M&J brand, and its headquarters will be in Horsens, Denmark. All current employees of the business, approximately 120 people, will transfer to the new company in connection with the transaction. The business’ net sales in 2020 totaled approximately 50 million euros, according to Metso Outotec.
Metso acquired Horsens-based M&J Industries A/S in 2009 for nearly 16 million euros from Dansk Kapitalanlaeg, making Metso a significant player in the solid waste recycling equipment segment. Metso merged with Outotec, a designer and builder of minerals processing and metals refining systems, in 2020. Metso Outotec continued to release products using the M&J name, having announced the availability of the M&J F320 FineShredder earlier this month.
Lasse Heinonen, president and CEO at Helsinki-based Ahlström Capital, says, “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.”
Ahlström Capital focuses its investment activity on industrial companies, real estate and forests.