Befesa has acquired the full ownership of French Recytech joint venture,
moving forward with its strategic global growth plan in Europe

EQS-News: Befesa S.A. / Key word(s): Investment/Joint Venture
Befesa has acquired the full ownership of French Recytech joint venture,
moving forward with its strategic global growth plan in Europe

21.06.2024 / 08:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

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PRESS AND INVESTOR ANNOUNCEMENT

Befesa has acquired the full ownership of French Recytech joint venture,
moving forward with its strategic global growth plan in Europe

  * Befesa acquires the remaining 50% of Recytech, its existing France-based
    steel dust recycling services joint venture with Recylex S.A., for EUR40
    million, representing an EBITDA multiple of 3.5x considering a
    through-the-cycle EBITDA

  * Acquisition represents an important milestone in Befesa's strategic
    global growth plan

  * Recytech's strategic location offers potential for expansion and
    capitalises on megatrends such as decarbonisation in the steel sector

  * Deal provides long-term stability for Recytech's workforce, suppliers,
    and customers, following Recylex's liquidation proceedings

Luxembourg, 21 June 2024 - Befesa, S.A. ("Befesa"), a leading provider of
hazardous waste recycling services enabling the circular economy within the
steel and aluminium industries, has signed a share purchase agreement and
completed the acquisition of the remaining 50% stake in Recytech, S.A.
("Recytech"), its France-based steel dust recycling services joint venture
with Recylex, S.A. ("Recylex") at an all-cash price of EUR40 million.

Recytech was established in 1991 as a 50/50 joint venture between Befesa
Steel Services GmbH (a company 100% owned by Befesa) and Recylex, a French
company providing metal recycling services. Recytech is located in
Fouquières-lès-Lens in the Pas-de-Calais department of Hauts-de-France, the
northernmost region of France. Recytech processes steel dust from electric
arc furnaces (EAF), extracting zinc and converting it into Waelz oxide
(WOX), a feedstock used in the production of electrolytic zinc. With a
workforce of 50 people, Recytech recycles 110,000 tonnes of EAF steel dust
and produces around 45,000 tonnes of WOX annually.

Having completed the transaction, Befesa now owns 100% of Recytech. This
acquisition is a strategic move for Befesa, which has managed all the
operations of the entire site over the past year during Recylex's insolvency
proceeding. It is also an important step in Befesa's sustainable global
growth plan (SGGP), announced in November 2022, comprising nine growth
projects across Europe, the US, and China. The investment in Recytech fits
well with Befesa's SGGP as a first step in increasing Befesa's EAF steel
mill dust recycling capacity in the region.

Javier Molina, Executive Chair of Befesa, said: "Befesa and Recylex have
been great joint venture partners since 1991, working together to provide
outstanding services for our clients. The acquisition of the remaining 50%
stake of Recytech marks an important milestone in the European component of
our growth plan. Europe remains our core business, and the acquisition of
the remaining 50% in Recytech represents the opportunity to strengthen our
leadership position in this crucial market, positioning us for further
growth. Unifying the Recytech business in Befesa's operations in France
reinforces our commitment to the market and is a firm demonstration of our
confidence in the current local leadership team. The strategic location of
Recytech will enable us to expand our EAF steel dust recycling services
further in the heart of an area where EAF steel production will grow over
the coming years."

Recytech's central location in the European steel industry growth area has
been offering and will continue to offer high strategic value, with
proximity to existing and potential customers. The site also offers Befesa
the opportunity to expand its European operations by constructing a second
kiln through a brownfield project, in line with its strategic growth plan.

The acquisition ensures long-term stability for the site's employees,
suppliers, and customers, following the uncertainty arising from Recylex's
two years in insolvency proceedings. The financial troubles of Recylex,
which led to its liquidation, resulted from challenges in its lead-acid
battery recycling business, unrelated to its interest in Recytech.

About Befesa

Befesa is a leading player in the circular economy, providing environmental,
regulated services to the steel and aluminium industries with facilities
located in Germany, Spain, Sweden, France, as well as in Turkey, South
Korea, China and the US. Through its two business units, Steel Dust and
Aluminium Salt Slags recycling services, which are a critical part of the
circular economy, Befesa manages and recycles around 1.9 million tonnes of
residues annually, with a production of around 1.7 million tonnes of new
materials, which Befesa reintroduces in the market, reducing the consumption
of natural resources. Further information is available on the Company's
website: www.befesa.com

Investor Relations

Email: irbefesa@befesa.com

Phone: +49 2102 1001 0

Media Relations

Richard Rigby, Kekst CNC

Email: richard.rigby@kekstcnc.com

Phone: +44 7970 767607


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   Language:       English
   Company:        Befesa S.A.
                   68-70, Boulevard de la Pétrusse
                   2320 Luxembourg
                   Luxemburg
   E-mail:         irbefesa@befesa.com
   Internet:       www.befesa.com
   ISIN:           LU1704650164
   WKN:            A2H5Z1
   Indices:        MDAX
   Listed:         Regulated Market in Frankfurt (Prime Standard);
                   Regulated Unofficial Market in Berlin, Dusseldorf,
                   Hamburg, Hanover, Munich, Stuttgart, Tradegate
                   Exchange; London
   EQS News ID:    1930165

End of News EQS News Service
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1930165 21.06.2024 CET/CEST