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Harsco Acquires ALTEK

Harsco Corporation acquired ALTEK Group on a debt and cash free basis for a purchase price of £45 million (approximately $60 million). The acquisition includes an additional future contingent consideration subject to the future financial performance of ALTEK over the next four years, consistent with its growth and revenue.

The cost-efficient recovery of metal and other valuable materials – and environmentally-safe solutions for residual waste materials – are increasingly important to the aluminum industry. Based in the U.K. ALTEK’s products and technologies address these and other operating challenges. Its products include aluminum dross and scrap processing systems and its latest innovation, AluSalt, which is a breakthrough technology that converts salt slag waste into valuable products, addressing one of the largest environmental concerns within the aluminum market.

Model of the ALUSALT salt slag recycling line.
Model of the ALUSALT salt slag recycling line.

“This acquisition is a very positive step forward for ALTEK, providing the company with a strong financial owner and industry leader which is committed to supporting ALTEK’s growth and innovation strategy,” said Alan Peel, managing director for ALTEK. “With Harsco’s extensive international presence and company infrastructure, Harsco will greatly enhance the ability of ALTEK to provide service and support to its international customer base. This will be particularly helpful as we commercialize our latest technology AluSalt™ around the world. With very similar and aligned values between the two companies, all of this will provide for a very exciting future for ALTEK with Harsco and the customers we serve within the aluminum industry.”

According to Harsco its acquisition of ALTEK, provides a number of benefits. The newly developed AluSalt slag processing technology provides a key example of the company’s track record of developing and successfully bringing to market new technologies to support the global aluminum industry. AluSalt shows great market potential. Salt slag processing today represents a nearly $2 billion potential market and is likely to realize future growth rates above the underlying aluminum market. An initial AluSalt plant is now operational in Europe. Other innovations are also  under development.

ALTEK's automated salt slag press
Slag entering ALTEK’s automated salt slag press (part of the AluSalt line).

In addition, ALTEK has a leading position in the production of aluminum dross pressing and electromagnetic stirring equipment. Its core (legacy) products are currently present in nearly 60 countries with over 400 installations. These technologies, along with AluSalt and other ALTEK products, complement the environmental brand of Harsco’s Metals & Minerals business and fit the core strategy of creating value from waste, with another zero-waste solution. Further, ALTEK represents an initial step in building a significant environmental solutions business within the aluminum industry.  The company’s revenues are expected to approach $100 million within five years, representing a roughly 40% CAGR and only a modest portion of the total market opportunity.

Together, ALTEK and Harsco will be able to leverage their global footprint with complementary solutions. ALTEK will benefit from Harsco’s Metals & Minerals global platform, extensive customer relationships and core process disciplines. Also, certain ALTEK primary products and by-products have applicable, value-enhancing applications within the steel industry.

“ALTEK fits perfectly with our strategy of developing a premier environmental solutions platform, by acquiring technologies that expand our capabilities in managing industrial waste,” said Nick Grasberger, Harsco president and CEO. “We are optimistic about ALTEK’s growth potential within our Metals & Minerals business. . . . ALTEK is M&M’s first acquisition in more than a decade, representing another step to accelerate our growth.”

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