American Zinc Recycling LLC, a leading provider of environmental services to the U.S. steel industry, announced that Luxembourg-based Befesa S.A. will acquire 100 percent of its recycling assets for $450 million. Additionally, Befesa will invest $10 million for a minority stake in AZR鈥檚 downstream refining operation in Rutherford County, NC, American Zinc Products, forming a joint venture with the current ownership.
The transaction will create a global leader in hazardous waste recycling services, enabling the circular economy within the steel and aluminum industries. The combined company will include all employees in AZR鈥檚 recycling business, and will operate under the Befesa name. 鈥淭his transaction brings together the two established leaders in our respective markets to create a global leader in recycling electric arc furnace dust,鈥� said Joel Hawthorne, CEO of AZR. 鈥淲e鈥檝e been working with the Befesa management cooperatively and productively and I鈥檓 confident this transaction is a huge win for our shareholders, employees and our customers.鈥�
The transaction increases Befesa鈥檚 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. Combining with AZR will provide Befesa with its first North America operation and a significant and well- developed presence in the growing EAF steelmaking markets in United States.
AZP鈥檚 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.
鈥淭he combination with Befesa is an exciting milestone in AZR鈥檚 170+ year history and an incredible opportunity to advance our mission of recycling hazardous steel mill dust and contributing to a greener economy,鈥� said Hawthorne. 鈥淥n a day-to-day basis, it鈥檚 business as usual for our customers and employees, but we will now have the opportunities, resources and support to serve our customers and grow our business even further.鈥�