Abengoa, the energy and environment company, has entered into an exclusivity agreement for the sale of 100% of its subsidiary Befesa to funds advised by Triton Partners. The deal is subject to finalizing documentation, approval by competition authorities and financial institutions.

The transaction values Befesa's total assets at €1,075 million. After customary net debt adjustments, total consideration for Abengoa would amount to €625 million: €352 million cash consideration at closing, a vendor note of €48 million with a four years maturity and deferred consideration valued at €225 million, which shall be received by means of a convertible loan, exchangeable into shares of Befesa at the moment of the exit of the Funds from Befesa.

Befesa specializes in the integral management of industrial waste. It has plants in Germany, Spain, United Kingdom, France, Sweden, Turkey and South Korea, as well as Chile, Argentina and Peru. According to Abengoa, Befesa is a leader in the steel dust and salt slags recycling sectors in Europe.

Befesa's management team, led by Chairman and CEO Javier Molina, would remain in place after the transaction.

The Triton funds usually invest in and support the positive development of medium-sized businesses in the Industrial, Business Services, and Consumer / Health sectors. Founded in 1997, Triton focuses on operational improvements and growth.

Manuel Sánchez Ortega, CEO of Abengoa said that the deal will help Abengoa to focus on its core activities and to reduce net leverage.

Source: Abengoa