Rubicon sells John Lawrie Metals to ArcelorMittal

Wahida Ahmed
03 March 2022

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Rubicon Partners has sold Scottish recycling business John Lawrie Metals to steel manufacturing group ArcelorMittal for an undisclosed sum.

The London-based GP acquired John Lawrie Group, consisting of the Metals and Tubulars divisions, from the Meldrum family in November 2017. Under Rubicon's ownership the business expanded its capability and reach, both organically and through acquisition, with a strategic focus on providing metal recycling services to the North Sea decommissioning market, according to a statement.

ArcelorMittal said in a press relase that it acquired the business as part of its commitment to increasing the use of scrap steel to lower CO2 emissions caused by steelmaking.

Mergermarket reported in July 2017 that John Lawrie Group received binding offers from private equity players LDC and HIG, as well as auction winner Rubicon.

In March 2021, Mergermarket reported that Rubicon had appointed Houlihan Lokey to sell the steel tubular arm of the group. According to a source close to the situation, the division has not been sold.

Rubicon is deploying equity via Rubicon Partners V, its first institutional fund, which has a ten year mandate to invest in complex industrial businesses in the UK and Europe. Prior to this vehicle, the sponsor was investing on a deal-by-deal partnership basis. According to Unquote Data, Fund V was registered in February 2020 with the Luxembourg Registry and has a target of USD 369.98m. Rubicon invests in industrial businesses across Europe and North America, with an enterprise value ranging between GBP 15m-250m, according to Rubicon's website.

Company
John Lawrie Group was founded in 1930 and is headquartered in Aberdeen, Scotland.

John Lawrie Metals, which is based in Aberdeen and has three other sites in northeast Scotland, is a consolidator of ferrous scrap metal.

People
ArcelorMittal - Geert Van Poelvoorde (CEO, Europe).

Advisers
Equity - Canaccord Genuity (M&A); PwC (Financial & Tax due diligence); Proskauer Rose (legal).