Triton's Befesa announces intention to float in Q4

Amedeo Goria
09 October 2017

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Private-equity-backed Befesa has announced its intention to float on the Frankfurt stock exchange by the end of 2017.

The listing will only include ordinary shares sold by existing investor Triton Partners. At the time of publication, the fund manager owned a 90% stake in the business and agreed on a six-month lock-up period following the IPO.

According to press reports, the GP expects to reap €750m in proceeds by floating up to 50% of its stake; the IPO could value the business at €2bn. According to a statement, the GP plans to provide additional secondary shares for a potential overallotment of up to 15% of the original offering.

Citigroup, Goldman Sachs International and JP Morgan are acting as joint global coordinators and joint bookrunners on the IPO, while Berenberg, Commerzbank, Santander and Stifel are acting as additional joint bookrunners.

Triton acquired the business from Spanish recycling corporate Abengoa in 2013 for a €1.075bn EV and €850m equity injection. The deal included a vendor note of €48m with a four-year maturity and a deferred consideration valued at €225m, which will be received as a convertible loan and will convert into the economic equivalent of 14.1% of common equity when the GP exits the company. During its ownership, the GP supported the business's expansion through several bolt-on acquisitions.

Founded in 1993 and based in Ratingen, the company provides environmental services to the steel and aluminium industries across Europe and Asia. It mainly focuses on treatments for steel dust and aluminium salt slag recycling, and has plants in Germany, Spain, Sweden, France, the UK, Turkey and South Korea. In the financial year ending in June 2017, the company generated €685m in revenues and €133m in EBIT, with a 19.5% margin.

In 2016 and 2017, the company completed the sale of non-core industrial environmental services units, including its branches in Peru, Chile and Colombia, and chemical cleaning businesses Solarca and Séché Environment.