Metier Sustainable Capital Fund II invests in world leader in telecommunications cable recovery and recycling business
Metier, through its Sustainable Capital International Fund II (“SCII”), has invested significant growth and replacement capital in Mertech Marine (“Mertech”), the world leader in the recovery and recycling of out of service submarine telecommunications cables.
Mertech is the world leader in the responsible recovery and recycling of out-of-service submarine telecommunication cables and has been pioneering the commercial recovery and recycling of out-of-service telecommunication cables since the early 2000’s. As the only turnkey provider of recovery and recycling capabilities in the world, Mertech has successfully processed more than 105 000 kilometers of undersea cable and cleared tens of thousands of tons of cable from cable depots around the globe. Since inception, the company has displaced an estimated 250 000 tonnes of CO2 equivalent through its recovery and recycling efforts.
John Hannig, who led the transaction on behalf of Metier said that “We are very excited about our investment into Mertech, which is a demonstration of a global leading circular-economy champion based in Africa. We are partnering with an experienced management team for the next stage of Mertech’s growth at a time when there is increased emphasis on metals recycling and the provision of alternative low-carbon sources of materials, with copper being a fundamental input for the clean energy transition.”
Mertech’s world-class cable dismantling facilities in South Africa and Southeast Asia are the result of years of research and development by its in-house team of passionate engineers. The facilities ensure that valuable commodities such as copper, steel and plastic are responsibly recycled and placed back into the circular economy. The facilities not only process cables recovered by Mertech, but also provide this service to the broader submarine cable industry. Mertech owns an impressive portfolio of out-of-service cables for future recovery using its own fleet of specially equipped and versatile cable recovery vessels.
Alwyn du Plessis, CEO of Mertech, said that “We have been fortunate to build long-term partnerships in our journey of growing the business in an exciting, yet challenging environment. We are excited about the Metier team joining us in this new growth chapter. We believe that together we will be able to further the ambitions of the Mertech leadership team beyond what we could imagine today. We have always seen huge opportunity in creating additional value to the recovered materials such as copper, steel and plastics through enhanced downstream processes. With Metier’s investment and support this can now be further unlocked.”
Mertech is the seventh portfolio company of the SCII fund which has a pan-African investment mandate for renewable energy, energy efficiency, resource-efficient infrastructure, and waste management. Rand Merchant Bank (a division of FirstRand Bank Limited), who will support capital expansion and working capital requirements to support the anticipated growth of the company, has worked alongside Mertech and Metier in the close of the transaction.
ABOUT METIER
Metier is an independent owner-managed private equity firm founded in 2003. The firm's independence is fundamental to its distinctive style, where the team forges partnerships with its portfolio companies and management teams. Since its formation, Metier has grown to comprise a team of over 45 professionals with offices in Johannesburg, Mauritius and Nairobi, and representation in London. Metier operates two parallel investment practices, the Capital Growth practice that concentrates on mid-cap entrepreneurial businesses requiring growth capital in sectors that demonstrate emerging market growth, and the Sustainable Capital practice that targets investments in energy efficiency, renewables, water and waste management businesses. For more information, visit www.metier.africa.
ABOUT MERTECH
Mertech Marine (“Mertech”), established in 2000, is the world leader in the recovery and recycling of out-of-service submarine telecommunication cables. Mertech recovers out of service cables using its own marine fleet, and has leveraged its expertise in the sector to offer value added services to the submarine telecommunication industry including depot services for cable storage and handling, freighting, route clearance, and shore-end removals. Mertech, through its hard-earned reputation for reliability and responsible management, has secured an inventory of cable to fully deploy its fleet over the next few years and is actively exploring further expansion plans. For more information, visit www.mertechmarine.co.za.