American Zinc Recycling LLC Closes Sale on Recycling Business and Establishes American Zinc Products Joint Venture
18 August 2021
American Zinc Recycling LLC announced the closing of the transaction that was previously announced on June 16, 2021, pursuant to which Befesa S.A., through a US subsidiary (“Befesa”), has purchased all of the stock of American Zinc Recycling Corp. (“AZR Corp.”) and obtained a minority position in American Zinc Products LLC (“AZP”).
AZR Corp. owns and operates four manufacturing facilities throughout the United States that recycle dust generated by electric arc furnace steel companies. Befesa S.A. is the global leader in the recycling of such dust and is publicly traded on the Frankfurt Exchange in Germany under the symbol BFSA.F.
Following Befesa’s acquisition of a minority position in AZP, AZR LLC will continue to own a majority interest in AZP with a US subsidiary of Glencore S.A. continuing to own the remaining interests. As part of the acquisition, Befesa secured an option for the acquisition of the remaining equity interests in AZP upon fulfillment of two-phased operational and financial performance milestones prior to 31 December 2023. AZR LLC has a corresponding put option against Befesa. AZR LLC will continue to own all the equity interests in its subsidiary The International Metals Reclamation Company, LLC (“INMETCO”).
Joel Hawthorne, President and CEO of AZR LLC and its subsidiaries, Stephen Bishop, Executive Vice President and CFO of such companies and Bill Breedlove, Chief Commercial Officer of such companies, after successfully managing the sale process and bringing the transaction to completion, will step down effective with the closing of the transactions as part of a planned transition.
Wayne Isaacs, Chairman of AZR LLC., stated, “We are grateful for the leadership and skills of Joel, Steve and Bill in bringing this transaction to a successful closing, as well as their contributions to the many improvements that have been achieved in all of our operating companies that made this transaction possible.
Mr. Hawthorne commented, “It has been an honor and privilege to lead and work with the team at AZR LLC through this transition period and the successful completion of this transaction. Befesa is a strong company with a similar operating strategy and will be an excellent steward as they enter the US market with this transaction. The company is poised for even greater success as it enters this next phase in the company’s history”.
Michael Griffin, formerly the Executive Vice President and COO of AZR LLC will become the President and CEO of AZR LLC and Andrew Repine, formerly Vice President of Finance, will become CFO of AZR LLC.
Mr. Isaacs continued, “We are happy to have Mike and Andrew stay on board as the executive leadership of AZR LLC, and its subsidiaries AZP and INMETCO. We are confident that through their leadership that AZP will achieve the milestones required for Befesa to acquire the remaining equity interests and provide a strategic direction for INMETCO. ”
Mr. Griffin commented, “The entire team at AZR LLC brought us to this pivotal point in the company’s success. The EAF recycling facilities will continue their strong performance under Befesa leadership, while AZP and INMETCO focus on achieving the milestones and strategic initiatives ahead of us. Mike continued, “At AZP, we have an experienced team in place, committed to bringing the AZP refinery to full capacity, providing 100% recycle sourced Special High Grade (SHG) and Continuous Galvanizing Grade (CGG) zinc to our many customers. INMETCO, will continue to provide EAF recycling services to its long term customers, while increasing nickel and other precious metal recovery, by enhancing its post-consumer battery recycling capabilities”.
As part of this transaction, AZR LLC will be renamed Metals Recovery Holdings LLC (AZR LLC as so renamed and after giving effect to Befesa’s acquisition of AZR Corp., “Metals Recovery Holdings LLC”).
About Metals Recovery Holdings LLC
Metals Recovery Holdings LLC, through its AZP zinc refinery, is the Western Hemisphere’s only producer of Special High-Grade Zinc and Continuous Galvanizing Grade Zinc from 100% recycled materials and it’s INMETCO facility is the leading provider of EAF dust recycling for the stainless steel industry and a key processor and recycler of post-consumer batteries.
The information in this notice contains forward-looking statements, including statements about operational developments and future operating levels and production rates. These statements are based on current assumptions, estimates and information, are not guarantees of future performance, and are subject to certain risks, trends and uncertainties. Our actual results, performance or achievement could differ materially from those expressed in, or implied by, the forward-looking statements. We can give no assurances that any of the events anticipated by the forward-looking statements will occur or, if any of them do, what impact they will have on our results of operations and financial condition. We undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof.