First Reserve Buys Metallum in $964M Deal

First Reserve Corp., a private equity investor in energy and natural resources industries, has acquired Belgium-based metal refining and recycling company Metallum Holdings S.A. The deal is valued at 670 million euro ($964 million).

First Reserve Corporation, a leading private equity firm in the energy and natural resources industries, announced today that it has reached agreement to acquire Metallum Holdings S.A. (“Metallum Group”), a European based base metal refining and recycling company. Metallum Group has a technological edge in processing and converting low grade copper scrap into metal. The total transaction value is €670 million.

With key operations in Beerse, Belgium, Metallum Group consists of two distinct business lines: Metallo, a copper and tin refining business that leverages its operational knowledge to process low and ultra low grade scrap and monetize related impurities; and Metallum, a European ferrous and non-ferrous scrap recycling and trading business. Metallum holds a c. 20% market share of traded copper volumes in Europe on account of its strong sourcing platform arising from its 14 yards and long term relationships with a network of c. 350 merchants that enables it to source attractively priced feed even in tight markets. The strong position in metal recycling should leave the company well positioned to capitalize on tougher E.U. environmental regulations.

“Metallum Group affords First Reserve a unique opportunity to gain exposure to the tight copper market without taking the single asset, geological, development or country risk that is typically associated with a business of this size. We are excited to support a proven management team to execute on their strategy to increase capacity, make operational improvements and implement their acquisition plan,” said Alex Williams, Director of First Reserve. “The company’s technological edge in recycling ultra low grade scrap back into copper adds further strength to the platform and underpins its competitive advantage.”

Patrick Verschelde, Executive Chairman of Metallum Group said, “We welcome the partnership with First Reserve, a first class private equity firm. The firm’s deep knowledge of the energy industry and its strong contacts in the metals sector will be a great asset to us as we look to execute our growth strategy and development plan.”

Completion of the transaction is subject to certain conditions, including obtaining approvals or confirmations from certain European regulatory authorities and other customary conditions.

About First Reserve Corporation
First Reserve is a leading private investment firm in the energy and natural resource industries, making both private equity and infrastructure investments throughout the energy value chain. For 28 years, it has invested solely in the global energy industry, and has developed a preeminent franchise, utilizing its broad base of specialized energy industry knowledge as a competitive advantage. The firm is currently investing its most recent private equity fund, which closed in 2009 at approximately US $9 billion. First Reserve invests strategically across a wide range of energy and natural resource industry sectors, developing a portfolio that is diversified across the energy value chain, backing talented management teams and building value by building companies. Further information is available at