Celsa Group welcomes new Spanish investor

Barcelona-based CriteriaCaixa, an investment holding company that manages the business assets of a foundation known as “la Caixa,” has reached a preliminary agreement to acquire a stake in the capital of Celsa Group, a Spain-based producer of recycled-content steel made in electric arc furnaces (EAFs).

The board of directors of Celsa Group has negotiations intended to lead to CriteriaCaixa becoming a shareholder of approximately 20 percent of the company. “The transaction is expected to be finalized in the coming weeks,” says Celsa Group.

The steel producer says the alliance will support its ongoing financial restructuring efforts and provide a strong boost to its industrial development strategy.

Celsa says it initiated a search for a Spanish industrial-focused shareholder in accordance with commitments made with the Spanish government by the current shareholders.

Of the five proposals submitted, the offer from CriteriaCaixa was selected. “In addition to offering strong quantitative and qualitative value, Celsa recognized the strategic alignment, reputation and experience of the investor,” says the steelmaker.

According to Celsa, CriteriaCaixa emphasized the importance of Celsa’s long-term leadership and solid commitment to socioeconomic development in the regions in which it operates—particularly in Spain, where it has had a presence for nearly 60 years.

The holding company aims to enhance the competitiveness of a business operating in a strategically important sector with direct influence across multiple industries, adds Celsa.

Celsa describes itself as managing Europe’s largest circular supply chain and says it has invested nearly $64 million in research and development in the last three years.

“If completed, the transaction would further CriteriaCaixa’s objective of investing in high-growth, value-generating industrial companies, as outlined in its 2030 strategic plan,” writes Celsa Group.

The move also supports the growth of CriteriaCaixa’s private equity portfolio, which the foundation hopes will reach a value of more than $4 billion by 2030.

Celsa operates from 120 locations, including seven steel mills, 12 rolling mills and 48 recycling facilities in Spain, France, the United Kingdom, Denmark, Finland, Norway, Poland, Sweden and Ireland.