Spanish aluminum recycler Befesa sold to triton

Spanish aluminum alloy producer and waste recycler Befesa has been sold for Eur331 million by its parent company, Abengoa, to investment funds run by Triton Partners, according to a statement issued Monday.

After net debt adjustments, the total equity to Abengoa was Eur620 million, the company said. This included a Eur348 million cash payment, of which Eur331 million was collected Monday and the remaining amount will be held in escrow until resolution of certain items.

Abengoa said the deal also included a vendor note of Eur48 million with a five-year maturity and a "deferred consideration for $225 million in the form of a convertible instrument exchangeable into 14% of Befesa at the moment of the exit of Triton from Befesa."

Befesa had signed an agreement on April 10 with US aluminum sheet maker Novelis to manage the scrap from its new $250 million aluminum recycling center in Nachterstedt, Germany. Befesa has plans to build a new Eur30 million 50,000 mt/year aluminum recycling plant in Bernburg, which is expected to be operational by the first quarter of 2014, it said.

A source close to the company said that several German diecasters had welcomed the move and would be looking forward to purchasing from the new plant in Q2 2014.

"Befesa lost volumes in Germany because of trucking costs [from Spain] and having alloys produced there will allow it to compete," said the source.