The deal aims to reduce Celsa's debt and reorganize its business with a focus on Spanish assets
Spanish steel company Grupo Celsa has announced the sale of its plants in the UK and Northern Europe – Celsa Steel UK and Celsa Nordic – to Czech investment fund Sev.en Global Investments (Sev.en GI). This decision is an important step in the implementation of Celsa’s plan to reduce its debt burden and optimize its business, the company said in a press release.
Sev.en GI, known for its expertise in the steel, energy and natural resources sectors, is actively expanding its presence in the global market. The group makes long-term investments in strategic assets, favoring sustainable business models.
As part of the transaction, Celsa will use the proceeds from the sale to reduce its debt in accordance with its obligations to creditors. This is in addition to the company’s reorganization measures, including an increase in share capital and the launch of an operational efficiency program.
In September 2023, a court in Barcelona approved a multi-billion dollar restructuring plan for Celsa, providing for the transfer of control to a group of creditors, including Deutsche Bank, Attestor, Anchorage, GoldenTree and SVP. The sale of the UK and Scandinavian assets was an important step in the implementation of this plan.
The deal does not include Celsa’s Polish unit, which remains the company’s largest foreign asset. This demonstrates Celsa’s intention to focus on its strategically important businesses.
Sev.en GI highly appreciated the potential of the acquired plants and plans to integrate them into its global development strategy. According to the company, the new assets will create additional growth opportunities in the European steel market.
“We consider the steel industry to be strategically important for our development, so we are pleased to add these plants to our portfolio. The production of green steel is in line with our commitment to sustainable development,” said Alan Svoboda, CEO of Sev.en GI.
Citigroup acted as financial advisor to Celsa, while Linklaters provided legal support for the transaction. This cooperation underscores the importance of the transaction for Celsa’s further stabilization and its entry into a new stage of development.
Celsa Steel UK and Celsa Nordic together produce 2 million tons of steel annually and employ more than 2,700 people. Their products are used in construction, including beams, rebar, mesh and wires.
“Both plants are technologically advanced and recognized as European leaders in the production of environmentally friendly steel. We are committed to working closely with both the management teams and other stakeholders to further develop these assets and unlock their long-term potential,” added Sev.en GI CEO.
As GMK Center reported earlier, Celsa has announced its intention to sell some of its steel assets in early 2024. In particular, these include businesses in Poland, Norway and the UK, with a total market value of €1.3 billion.
