Carleton McKenna & Co. acted as a co-financial advisor to Republic Alternative Technologies, Inc. (“Republic”) in its sale to the Finnish technology and engineering firm Outotec Oyj (“Outotec”). The acquisition of Republic’s new anode technology solution will be complimentary to Outotec’s global strategy to enable its metals and mining customers to operate more sustainable and efficient electrowinning plants. Republic’s patented coated titanium anodes (branded RGT™ anodes and MSA™ anodes) replace lead anodes in metals refining processes. The materials-based anode technology reduces electricity use (the largest cost component in metals refining), and eliminates lead-based environmental and health risks. The acquisition price was not disclosed.
Republic’s RGT™ anodes have been successfully used for many years in copper refining facilities located in the U.S. and South America, and Outotec anticipates using its strong engineering support and customer relationships to dramatically accelerate adoption. Further, Outotec has extensive expertise in the development of metals processing solutions and technologies and anticipates success in scaling MSA™ anode adoption in zinc electrowining facilities and is exploring further applications.
Outotec's CEO Pertti Korhonen noted “Republic Alternative Technologies is a relatively young company that has strongly focused on development of sustainable solutions. Their premium anodes fit seamlessly with Outotec's electrowinning technology and service offerings. By combining the expertise of Republic Alternative Technologies and Outotec we can offer our wide customer base comprehensive life cycle solutions. There are good opportunities to multiply the business volume of the coated titanium anodes in copper processing and commercialize applications to other metals."
Martin Zanotti Sr., CEO of Republic, said, “We look forward to working with the highly regarded professionals at Outotec and believe the combination of capabilities will allow for much more rapid adoption of a solution that saves both money and the environment. As part of the transaction process, the Carleton McKenna team worked closely with our management team and was dedicated to providing thorough analysis and support throughout the process. The team collaborated with key stakeholders and worked with the buyer to negotiate a ‘win-win’ deal structure for both the buyer and seller while maximizing shareholder value.”
Based in Cleveland, Ohio, Republic produces proprietary new coated titanium anodes used in electro-refining copper, zinc, nickel and other metals. Republic’s anode technology reduces electrowinning (EW) cell energy by more than 15%. Specifically, the Company’s anode technology removes lead from the entire EW system and improves metal cathode product quality. The anode eliminates cell cleaning of lead sludge and lead anode cleaning and straightening. The technology also eliminates the contact of lead with the EW plant operators. Republic’s first successful commercial installation of the anodes occurred in 2007. Subsequently, Republic has converted sites in Arizona and New Mexico and South America.
Outotec is a Finnish company, headquartered in Espoo, that provides technologies and services for the metal and mineral processing industries. The company produces machines and methods that facilitate the various stages of extractive metallurgy and mineral processing from ore through to pure metal or mineral. The company also provides engineering and after-sales services for its products. Outotec generated revenue of EUR 1.9 billion in 2013.
About Carleton McKenna & Co.
For more than thirty years, Carleton McKenna & Co. and its predecessor firms have been providing merger and acquisition advisory, capital raising and valuation services for small to mid-cap regional clients – both public and private – with expertise across a broad array of industries. For further information about Carleton McKenna & Co., please visit www.carletonmckenna.com.
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*Securities placed through Financial America Securities, Inc., which is a member of FINRA/SIPC