French recycling giant Derichebourg has acquired Ecore Holding. The family-owned group intends to consolidate its position as a “leader of the circular economy in the transformation of metal waste from recycled raw materials”. Experts from AURIS Finance, a merger and acquisition consultancy, analyse this major market move.
A historic reference in the industry
Since its beginnings in 1957, the Derichebourg family business has come a long way. Initially based in the Paris region, the company’s first trade was in scrap metal. By focusing on technology – notably with the creation in 1966 of the first shredder in France capable of shredding 500 vehicles in a day – the group quickly established itself as a leader in recycling and quickly expanded internationally.
Listed on the Paris stock exchange, Derichebourg has grown through successive acquisitions and in particular through a structural merger completed in 2007 between Compagnie Française des Ferrailles (CFF) and Penauille PolyServices, both chaired by Daniel Derichebourg. Present in ten countries, Derichebourg now has two divisions: Derichebourg Environment, specialised in waste collection and recycling, and Derichebourg Multiservices. It employs more than 40,000 people worldwide.
Derichebourg reaches critical mass and becomes market leader
With the acquisition of Ecore Holding, Derichebourg’s turnover could approach €5 billion. With 1,323 employees and 70 collection and production sites in France, the giant has acquired another behemoth in the sector. However, it will have taken a year to complete the takeover. The merger was announced on 30 December 2020, before being formalised by an agreement dated 1 March 2021. It was not until 17 December of the same year that the transaction was completed, following approval from the various competition authorities. “Derichebourg is consolidating its critical mass, making it one of the leading players of the circular economy in the transformation of metal waste from recycled raw materials,” the group said in a press release. The acquisition of Ecore Holding will enable Derichebourg to strengthen its position in five material categories: ferrous metals (steel), non-ferrous metals (aluminium, copper, etc.), lead batteries, paper, cardboard, and plastics. The group will also be able to benefit from the commercial momentum of Ecore Holding, which has a strong presence in France and Europe.
The sector is showing a clear trend towards concentration
Derichebourg’s acquisition of Ecore follows another major market move in the sector: Veolia’s takeover bid for its long-standing French rival Suez. After months of negotiations, the transaction was finally sealed on 10 January 2022 and is expected to increase Veolia’s turnover by almost 40%, according to experts.
Get the support you need
In addition to these two landmark transactions, there are countless smaller companies specialising in waste management. With demand for waste collection, management, and recycling growing strongly in France and Europe, these groups are often the target of larger companies looking to acquire them. Companies with disruptive technologies or positioned in niche markets are particularly sought after. Whatever your project, sale or acquisition, AURIS Finance’s sector specialists can help you.
