American Zinc Recycling closes sale of subsidiary

American Zinc Recycling LLC (AZR LLC) has closed a deal in which Befesa S.A., through a US subsidiary, 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. specializes in recycling such dust and is publicly traded on the Frankfurt Exchange in Germany.

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. 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, and Bill Breedlove, chief commercial officer, will step down effective with the closing.

Michael Griffin, formerly executive vice-president and COO of AZR LLC will become president and CEO of AZR LLC. Andrew Repine, formerly vice-president of finance, will become CFO of AZR LLC.

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).