Sev.en GI Acquires Celsa’s UK and Nordic Steel Plants

Sev.en Global Investments (GI), a Czech-based investment group that invests in a variety of sectors, on Thursday said that it will fully acquire Spain-headquartered long steel producer Grupo Celsa’s UK and Nordic subsidiaries, reportedly for $632 million.

With a focus on power generation and mining of natural resources, Sev.en operates on a global scale, with investments in Europe, Australia, North America, and Asia. Sev.en GI is known for its long-term vision and expertise in building strong businesses that thrive in a constantly evolving market. The company is committed to creating value for both its stakeholders and the communities in which it operates.

Grupo Celsa said that it will devote all the funds received after the divestment to the reduction of Grupo Celsa’s indebtedness in accordance with the legally assumed commitments.

“Through this important divestment, which is added to the recent increase in share capital and the launch of an ambitious efficiency plan, Grupo Celsa continues with the implementation of its plan to reorganise its industrial and financial situation, focusing on its operations in Spain and on the reduction of financial leverage,” Grupo Celsa said.

Celsa Steel UK is the largest EAF-based steel producer in the UK with production capacity of 1.2 million metric tonnes per year (MMTPY) of crude steel at its plant in Wales.

Celsa Nordic has operations in Norway, Finland, Sweden and Denmark and produces via its EAF-based plant in Mo i Rana, Norway, with output of 683,000 million tonnes of rebar and wire rod in 2023.

This is Sev.en’s first entry into the steel industry, which has a track record of targeting restructuring and growth acquisition opportunities, particularly in power generation and mining of various natural resources.

Vital Acquisition

Alan Svoboda, CEO of Sev.en Global Investments, said that they perceived the steel industry as vital for their growth trajectory and acquisition fortifies Sev.en position on the European market including the entry into the promising Scandinavian markets. Production of green steel also advances Sev.en GI clearly towards sustainability.

“The integration of Celsa’s steel plants will enhance Sev.en Global Investments’ diverse portfolio by adding a combined production capacity of 2 million million tonnes of steel products annually. These products, primarily used in construction applications such as bars, sections, mesh, and wires, underscore the group’s unwavering commitment to sustainable industrial practices,” Svoboda added.

Sev.en Global Investments is part of the Sev.en Group, whose beneficiary is Czech entrepreneur and investor Pavel Tyka.

Platts, part of S&P Commodity Insights, assessed Northwest Europe Rebar Ex-Works Wkly at Eur600/mt on Nov. 20, stable week on week. Since the beginning of the year prices lost Eur20/mt, but they are still well below the highest historical prices reached on March 30, 2022 when they recorded Eur1340/mt base ex-works.