Under the deal, Befesa will acquire American Zinc’s assets for US$450 million. In addition, it is taking a US$10 million minority stake in new joint venture being formed around American Zinc’s downstream refining plant in North Carolina. 

“This transaction brings together the two established leaders in our respective markets to create a global leader in recycling electric arc furnace dust,” said American Zinc chief executive Joel Hawthorne. “We’ve been working with the Befesa management cooperatively and productively and I’m confident this transaction is a huge win for our shareholders, employees and our customers.”

With the sale, Befesa’s total steel dust recycling capacity will increase by 40% to 1.7 million tons across 12 facilities evenly spread through Europe, Asia and the United States. The combined company will include all employees in American Zinc’s recycling business, and will operate under the Befesa name.

Befesa may eventually acquire a 100% stake in the refining plant. But for now, employees there will remain with the new joint venture. 

The deal is expected to close in the third quarter.