Befesa to Buy Recycling Assets of American Zinc Recycling
Posted on 06/18/2021
American Zinc Recycling LLC (AZR), a provider of environmental services to the U.S. steel industry, announced that Luxembourg-based Befesa S.A. will acquire 100% of its recycling assets for US$ 450 million. Additionally, Befesa will invest US$ 10 million for a minority stake in American Zinc Recycling’s downstream refining operation in Rutherford County, North Carolina, American Zinc Products (AZP), forming a joint venture with the current ownership.
The deal augments Befesa’s total steel dust recycling capacity by 40 percent to 1.7 million tons across 12 facilities evenly spread through Europe, Asia and the United States. AZP’s zinc refining operation will be a joint venture between Befesa and the existing AZR shareholders, whereby Befesa may eventually acquire 100% of AZP pursuant to call and put options tied to certain operational and financial milestones through December 31, 2023. AZP employees will remain with the joint venture. The vertical integration strategy of AZR and AZP will remain in place through a series of 3-year commercial contracts or until Befesa achieves 100% ownership of AZP. The Rutherford County facility produces Special High Grade (SHG) and Continuous Galvanizing Grade (CGG) high purity zinc metal using recycled steel mill dust. This EAF dust is processed at the AZR recycling facilities, and then further treated through the combined modern solvent extraction and electrowinning technologies of AZP, enabling the circular economy.
The International Metals Reclamation Company (INMETCO), will continue to be a wholly owned subsidiary of American Zinc Recycling and operate as a standalone business.
Advisors
BMO Capital Markets acted as financial advisor to AZR in connection with the transaction and Akin Gump Strauss Hauer & Feld LLP acted as legal advisor to AZR in connection with the transaction.
American Zinc Recycling is headquartered in Pittsburgh, PA, American Zinc Recycling LLC through its operating subsidiaries employs approximately 700 people, and has six state-of-the-art facilities throughout the U.S.
Triton acquired Befesa from Abengoa, the Spanish industrial conglomerate, in July 2013. Triton had monitored Befesa through its Sectors, Stars & Superstars deal origination program since 2005. In November 2017, Triton Fund IV was able to have an IPO of Befesa. In June 2019, Triton successfully placed 6,350,174 shares in Befesa S.A. and fully divested its shareholding in the company.
