The multi-metal approach
gives us options

What are your acquisition criteria?

WS: Aurubis has its roots in Hamburg, and we maintain a pragmatic, Hanseatic approach in M&A topics as well. As such, we want each of our acquisitions to create value, enhance our sustainability, and contribute to our multi-metal strategy. We should also understand the risks involved and how to mitigate these. Geopolitically, this means that we favor regions that are fundamentally politically stable. Aurubis thinks in the long term and therefore needs the security to be able to plan. A stable energy supply is highly relevant to us in this regard. Last but not least, there’s the question of logistics: We consider companies that could be easily integrated into our existing network of Group companies to be especially interesting.

Is Aurubis capable of integrating larger companies as well?

WS: I think that taking a look at our plant in Bulgaria clearly answers this question. Acquired in 2008, the smelter is now one of the most modern in Europe. Thanks to the latest capacity optimization, Pirdop now even has a higher concentrate throughput than the parent plant in Hamburg. At the same time, our Bulgarian plant is one of the most environmentally friendly in the world, and it fulfills our high efficiency requirements, making it a real M&A success story. It illustrates well that we can transfer our expertise and our skills within the Group, enabling organic growth. Together with additional acquisitions that we’ve made in the past, such as the recycling specialist Hüttenwerke Kayser in Lünen, our plants in Olen and Avellino, and the very recent acquisition of Deutsche Giessdraht, we have created a highly efficient and integrated setup in the Group.

So what transaction sizes are feasible?

WS: As a virtually debt-free company, we could incur debt up to three times our EBITDA, generally speaking, without violating any bank restrictions. This gives us a comfortable scope. However, we are more likely to make smaller to medium-sized acquisitions, as opposed to a large transaction. Whether this is successful or not depends on many factors, not least the appraisal of the object of purchase in question. Another very important factor for the success of an M&A transaction is that the parties involved are committed to forging reliable, long-term partnerships. And this is certainly true of Aurubis.

Will you be developing into more of a solution provider in the future?

WS: Absolutely. With FCM, we are already breaking new ground and clearly positioning ourselves as a preferred partner for our mine suppliers, recycling material suppliers, and industrial suppliers when it comes to complex input materials. There is still a lot more potential in these partnerships, especially when we’re talking about metallurgy and processing issues, areas where we can contribute our know-how. Incidentally, this also enhances the probability that financing materializes for a mine. When it comes to solutions on the recycling side, our partnerships to close the material cycle come to mind in particular. In this way, we enable valuable natural resources to be used over and over again. And that’s good for all of us in the end.