Befesa S.A.
Befesa S.A. plans IPO in Q4 2017
DGAP-News: Befesa S.A. / Key word(s): IPO Befesa S.A. plans IPO in Q4 2017 Ratingen, 6 October 2017
Javier Molina, CEO of Befesa, said: “Befesa has grown very successfully under private ownership over the past few years. Going public marks an important next step in the strategic development of our Company, and we are ready for it. The IPO will give us better access to the capital markets, allowing us the flexibility to continue along our growth path and delivering our ambitious plans for years to come.” Befesa is a leading player for steel dust and aluminium salt slags recycling services in its European core market, with an estimated market share of about 45%-50%. The Company operates plants in Germany, Spain, Sweden, France and the UK, as well as in Turkey and South Korea. Befesa benefits from increasingly strict environmental regulation and macro-economic trends towards greater sustainability and more environmentally friendly solutions, strong and longstanding client relationships and enhanced demand for steel and aluminium production leading to increasing demand for its services. Befesa provides important services to its customers. Befesa collects and recycles hazardous waste from steel producers and aluminium recyclers for whom recycling is mandatory and strictly regulated in most jurisdictions. Befesa is a critical and integral part of its customer’s value chain. Its two segments are:
Befesa is currently owned by funds advised by private equity firm Triton which acquired Befesa from Abengoa S.A. in 2013. Under Triton’s ownership, Befesa has invested substantial funds to grow the business organically and through add-on acquisitions. In the 12 months ended 30 June 2017, Befesa saw strong growth and high capacity utilization paired with increased profitability. The Company generated revenues of EUR685 million and an adjusted EBIT of EUR133 million (19.5% margin) during this period. This represents a significant increase compared to the financial year 2016, in which Befesa generated revenues of EUR612 million and an adjusted EBIT of EUR103 million (16.9% margin).
Leading position in markets with favorable macro and mega trends supports steel dust and aluminium salt slags recycling services
Competitive advantage from facilities close to customers
Provision of critical environmentally regulated services to long-term customers
Services business model with protected competitive positioning
Attractive growth and high margins combined with proven resilience and stable cash flows through the cycle
Well defined growth strategy
Experienced and disciplined management team with a strong growth track record
Overview of the Offering Befesa plans to list its shares on the regulated market of the Frankfurt Stock Exchange (Prime Standard). The Offering of secondary shares currently owned by Triton will consist of a public offering in Germany as well as private placements in certain other jurisdictions, and will allow for sufficient free float after listing. Triton plans to provide additional secondary shares for a potential overallotment in the amount of up to 15% of the original offering. As of the date of this release, Triton indirectly holds a stake of over 90% in Befesa and intends to remain significantly invested post-IPO in order to participate in the Company’s long-term development. Befesa plans a lock-up period of 6 months for Triton and the Company as well as 12 months for the Company’s top management. Citigroup, Goldman Sachs International and J.P. Morgan are acting as Joint Global Coordinators and Joint Bookrunners on the Offering. Berenberg, Commerzbank, Santander and Stifel are acting as additional Joint Bookrunners.
Befesa is a leading international provider of critical environmental regulated services to the steel and aluminium industries with facilities located in Germany, Spain, Sweden, France and the UK, as well as in Turkey and South Korea. Through its two business units, steel dust and aluminium salt slags recycling services, Befesa manages and recycles more than 1,300kt of residues annually, with a production of more than 600kt of new materials, which Befesa reintroduces in the market, reducing the consumption of natural resources. Further information can be found on the Company’s website: www.befesa.com [1] Current name of the holding company is Bilbao MidCo S.à r.l., which will be renamed to Befesa S.A. prior to the IPO.
Max Hohenberg Maximilian Karpf
Rafael Pérez
This communication does not constitute or form part of an offer of securities for sale or solicitation of an offer to purchase securities in the United States, Canada, Australia, Japan or in any other jurisdiction in which such offer may be restricted. The securities referred to in this communication have not been, and will not be, registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States, except on the basis of an applicable exemption from registration or in a transaction not subject to registration under the Securities Act. There will be no public offering of securities in the United States or anywhere else, except for Germany. In the United Kingdom, this communication is directed only at persons who: (i) are qualified investors within the meaning of the Financial Services and Markets Act 2000 (as amended) and any relevant implementing measures and/or (ii) are outside the United Kingdom or (iii) have professional experience in matters relating to investments and fall within the definition of “investment professionals” contained in article 19 (5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Order”) or are persons falling within article 49 (2)(a) to (d) (high net worth companies, unincorporated associations, etc.) of the Order, or fall within another exemption to the Order (all such persons referred to in (i) to (iii) above together being referred to as “Relevant Persons”). Any person who is not a Relevant Person must not act or rely on this communication or any of its contents. Any investment or investment activity to which this communication relates is available only to Relevant Persons and will be engaged in only with Relevant Persons. This communication constitutes neither an offer to sell nor a solicitation to buy securities. The public offering in Germany will be made solely by means of, and on the basis of, a securities prospectus for the purposes of Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003, as amended (the “Prospectus Directive”), which is to be published. An investment decision regarding the publicly offered securities of the Company should only be made on the basis of the securities prospectus. The securities prospectus will be published promptly upon approval by the Commission de Surveillance du Secteur Financier (CSSF) and notification to the Bundesanstalt für Finanzdiensleistungsaufsicht (BaFin) and will be available free of charge from the Company, Befesa Management Services GmbH, Balcke-Dürr-Allee 1, 40882 Ratingen, Germany , or on www.befesa.com. Statements contained herein may constitute “forward-looking statements.” Forward-looking statements are generally identifiable by the use of the words “may”, “will”, “should”, “plan”, “expect”, “anticipate”, “estimate,” “believe”, “intend”, “project”, “goal” or “target” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are based on current expectations and involve a number of known and unknown risks, uncertainties and other factors that could cause the Company’s or its industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. You should not place undue reliance on forward-looking statements and the Company does not undertake publicly to update or revise any forward-looking statement that may be made herein, whether as a result of new information, future events or otherwise. The Joint Bookrunners are acting exclusively for Befesa and Triton in connection with the Offering. They will not regard any other person as their respective client in relation to the Offering and will not be responsible to anyone other than Befesa and Triton for providing the protections afforded to their respective clients, nor for providing advice in relation to the Offering, the contents of this announcement or any other matter referred to herein.
06.10.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |