Triton floats Befesa in €954m IPO

Oscar Geen
03 November 2017

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Triton-backed Befesa, an environmental services provider, has made its stock market debut on the Frankfurt Exchange at €28 per share, amounting to a market cap of €954m.

The IPO priced at the bottom of the €28-38 range set by the company on 20 October. Shares opened at €28 on 3 November and had risen to €29.43 by mid-morning.

Triton is expected to reap €461m from the offering, assuming full exercise of the greenshoe option.

The total number of ordinary shares in the company post-offering is expected to be 34,066,705 with a free float of 48.3%.

The selling shareholders agreed to a lock-up period of six months for Triton, as well as 12 months for the company's top management.

Previous funding
Triton acquired Befesa 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.

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.

Company
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.

People
Triton Partners – Peder Prahl (director).
Befesa – Javier Molina (CEO).

Advisers
Company – Citigroup (global coordinator); Goldman Sachs International (global coordinator); JP Morgan (global coordinator); Berenberg (joint bookrunner); Commerzbank (joint bookrunner); Santander (joint bookrunner); Stifel (joint bookrunner).