Business Strategy Metso Outotec to Sell its Waste Recycling Business
Under an agreement signed between Metso Outotec and Ahlström Capital, Metso Outotec will divest its Waste Recycling business line to the investment company. The move is in line with the Finland-based firm’s goal of focusing on the aggregates and mining industries.
Helsinki/Finland – Metso Outotec has signed an agreement to divest its Waste Recycling business line to Ahlström Capital, a family-owned investment company. Metso Outotec announced in October 2020 its decision to divest its Recycling business which comprises of the waste recycling and metal recycling business lines based on the company’s strategic focus on the aggregates and mining industries. The closing of the transaction is expected to take place during the fourth quarter of 2021.
The parties have decided not to disclose the value of the transaction.
The divestment will have a minor positive impact on Metso Outotec’s financial results.
The Waste Recycling business has been reported as part of discontinued operations in Metso Outotec’s financial statements. Metso Outotec continues with the divestment process of its Metals Recycling business line.
“The Waste Recycling business, M&J, has a proven track record with a strong growth profile, in an attractive market,” says Lasse Heinonen, President and CEO, at Ahlström Capital. “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.”
The Waste Recycling business will be operating under the M&J brand, and its headquarters will be in Horsens, Denmark. All current employees of the business, approximately 120 persons, will transfer to the new company in connection with the transaction.