Greybull Capital makes bid for Ascometal mills

The purchase offer made by London-based Greybull Capital for electric arc furnace (EAF) steelmaking and alloyed steel facilities in France owned by the Swiss Steel Group has been validated by the Strasbourg Judicial Court in France.

“This takeover, supported by the French state, will allow Ascometal to benefit from solid financial support and the industrial experience of Greybull Capital,” says the equity group, which at one time owned blast furnace/basic oxygen furnace assets in the United Kingdom now owned by the China-based Jingye Group.

According to Greybull, Ascometal is a major European player in special steels, operating in the automotive, rolling, energy and mechanical sectors, present in Europe, America and Asia.

“Ascometal factories also benefit from access to carbon-free energy and are resolutely committed to the environmental transition efforts of the European steel industry," Greybull says. "Greybull Capital's offer ensures the takeover of all of Ascometal’s activities: production sites, i.e., the Hagondange infrastructures (steel mill, rolling mill and finishing sites in France), the three Custines (France) machining and finishing sites, Marais de Saint Etienne (also in France) and Leffrinckoucke (in northern France), as well as the research center for special steels (CREAS, in eastern France).”

Greybull says its support will thus enable Ascometal to ensure the relaunch of its activities, particularly in automotive steels, and to diversify into the production of steel for the mechanical, energy and of the defense.

“To develop this new line, the recovery plan envisages a transformation of its industrial tools, with the restart of the Leffrinckoucke rolling mill, which was shut down in 2019, and the creation of an ingot route in Hagondange," the company continues. "The current Ascometal management team will remain in place and will be supported by Roland Junck, who will become president.”

Former managing director of ArcelorMittal and chair of British Steel and Ascoval Roland Junck will bring his extensive experience of 40 years in the steel sector, according to Greybull.

“Thanks to this new financial and industrial support, Ascometal will be able to continue to serve its customers and partners under the best conditions, and to offer a new future to its highly qualified employees,” the firm adds.

“We are very pleased that the court has accepted our offer to take over Ascometal," adds Marc Meyohas, managing partner of Greybull Capital. "The industrial project, supported by stakeholders and the state, will ensure the continuation of activities and maintain jobs. The teams have recognized know-how and expertise, particularly in the automotive, mechanical and oil and gas markets, but also in aeronautics and in the manufacturing of carbon-free steel.

“We are confident in the group’s ability to develop, driven by significant diversification in the production of arms parts. Turnaround of a business is always a challenge, but the plans for Ascometal's future are strong and exciting; we look forward to working with Ascometal’s management and teams to achieve the success they deserve.”

Greybull Capital is an entrepreneurial investment group dedicated to improving businesses, for all stakeholders that invests in a wide range of sectors and company sizes, from large corporations to small to medium enterprises in Europe.

“The takeover offer from Greybull Capital will allow the company to find new life after a long period of financial difficulties," Ascometal President Olivier Eberhard says. "Their industrial project guarantees the maintenance of almost all jobs, and offers a new future for the group, with a consolidation of its assets and a strong diversification of its activities. The Greybull Capital team is familiar with the challenges of the steel industry, and their commitment to us, both financial and strategic, will be a major asset in driving the group's transformation.”