American Zinc Recycling sells recycling business

Pittsburgh-based American Zinc Recycling LLC (AZR) has announced that Luxembourg-based Befesa S.A. has purchased all of the stock of American Zinc Recycling Corp. and obtained a minority position in American Zinc Products LLC (AZP). American Zinc Recycling operates four manufacturing facilities in the United States that recycle dust generated by electric arc furnace (EAF) steel mills. Befesa also is a recycler of dust generated from EAF steel mills.

AZR reports that it will continue to own a majority interest in American Zinc Products with a U.S. subsidiary of Glencore S.A. continuing to own the remaining interests. As part of this acquisition, Befesa secured an option for the acquisition of the remaining equity interests in American Zinc Products upon fulfillment of two-phased operational and financial performance milestones before Dec. 31, 2023. According to AZR, the company has a corresponding put option against Befesa and will continue to own all the equity interests in its subsidiary The International Metals Reclamation Co. LLC (Inmetco).

As part of the transaction, AZR LLC will be renamed Metals Recovery Holdings LLC.

AZR says several of its executives have stepped down from leadership with the closed transaction, including Joel Hawthorne, president and CEO of AZR LLC and its subsidiaries; Stephen Bishop, executive vice president and chief financial officer; and Bill Breedlove, chief commercial officer.

“We are grateful for the leadership 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,” says Wayne Isaacs, chairman of AZR.

Hawthorne adds, “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 chief operating officer of AZR LLC, will become president and CEO of AZR LLC. Andrew Repine, formerly vice president of finance, will become chief financial officer of AZR.

“The entire team at AZR LLC brought us to this pivotal point in the company’s success,” Griffin says. “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. At AZP, we have an experienced team in place, committed to bringing the AZP refinery to full capacity, providing 100 percent 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 postconsumer battery recycling capabilities.”