Celsa UK assets sold to Czech investment fund

Spain-based Grupo Celsa says it has reached an agreement with Sev.en Global Investments (Sev.en GI) for the sale of all of its subsidiaries and assets in the United Kingdom and the northern European Nordic countries.

The overall company Grupo Celsa was the subject of an administrative (bankruptcy-related) takeover by several of the firm’s creditors last year.

At that time, Celsa operated scrap-fed electric arc furnace EAF mills and other production facilities in Spain, France, Norway, Poland and the United Kingdom, as well as a European network of 45 metal recycling facilities.

Now, Czech Republic-based Sev.en GI will assume ownership of recycled-content EAF rebar mills in the United Kingdom and Norway and several downstream facilities in those two nations plus Denmark, Finland and Sweden.

Celsa describes the new owner as an investment group with a presence in a variety of sectors, “with a focus on power generation and mining of natural resources.” The acquiring fund maintains investments in Europe, Australia, North America and Asia, according to Celsa.

“Grupo Celsa will devote all the funds received after the divestment to the reduction of Grupo Celsa’s indebtedness in accordance with the legally assumed commitments,” states Celsa.

Continues the seller, “Through this important divestment, which is added to the recent increase in share capital and the launch of an ambitious efficiency plan, Grupo Celsa continues with the implementation of its plan to reorganize its industrial and financial situation, focusing on its operations in Spain and on the reduction of financial leverage.”

Celsa says Citigroup acted as its exclusive financial advisor and London-based Linklaters acted as its legal advisor.