Syntagma Capital in talks with Eramet to buy Erasteel

• Erasteel recorded around €275m in revenues in 2022
• Erasteel is Syntagma’s third carve-out ever and second deal in 2023
• Syntagma is a privately held investment company based in Brussels, Belgium

Syntagma Capital has entered into talks with Eramet to acquire Erasteel, a global firm in the conventional and powder metallurgy of high-speed steels used for high performance machining, drilling and cutting tools.

Erasteel is headquartered in Paris, France. The firm employs around 850 employees across its six sites in France, Sweden, and China. It reported around €275 million in revenues in 2022.

“Despite a very challenging M&A market, Erasteel represents our second deal in 2023 and our third deal in the last six months, reflecting our ability to provide sellers with speed and certainty,“ said Sebastien Kiekert Le Moult, managing partner at Syntagma.

Erasteel is Syntagma’s third carve-out, added Le Moult.

The proposed deal is expected to be completed by the end of the first half of 2023, subject to relevant regulatory approvals.

Syntagma’s team on the deal include Le Moult, Frank Coenen, partner, Benjamin Dahan, partner, Fabio Yamasaki, principal, and Gabriele Lo Monaco, senior associate.

“We intend to leverage our global experience in metals and Erasteel’s extensive R&D and technical know-how, global presence and strong customer relationships to further enhance its growth, both organically and through targeted M&A,” said Coenen. “We also intend to accelerate the development of the recycling division of Erasteel in France.”

Syntagma is a privately held investment company based in Brussels, Belgium. The firm invests in companies within the chemicals, industrial and B2B services sectors with turnovers between €50 million to €750 million.

Willkie Farr Gallagher served as legal counsel, Lincoln International  as M&A advisor, PwC as financial adviser, and Advention Business Partners as commercial and strategy advisor to Syntagma.