AECI DIVESTS SCHIRM US BUSINESS, FOOD AND BEVERAGE BUSINESS AND BAAR-EBENHAUSEN ASSETS TO FOCUS ON CORE GROWTH

 Johannesburg, 17 July 2025 – AECI is pleased to announce the disposals of Schirm USA, the Baar-Ebenhausen assets in Schirm Germany as well as the Food & Beverage division.

Disposal of Schirm USA – AECI through its wholly owned subsidiary Schirm GmBH (“Schirm Germany”), has entered into an asset purchase agreement with Liberation Chem-Toll, LLC, for the disposal of its Schirm USA business for a total purchase consideration of USD60 million (c.R1.1 billion).

Schirm USA is a chemical toll manufacturer in the United States of America with formulation, packaging and warehouse facilities strategically located in North Texas and Southern Illinois. Schirm USA processes and produces chemicals for customers in various industries including agriculture, industrial chemicals and speciality products through the provision of, inter alia, liquids, powders, extruded granules, pellets and impregnated granules.

The transaction is expected to close on/or before 30 August 2025, subject to the fulfilment or waiver of customary conditions precedent, typical with transactions of this nature.

Disposal of Baar-Ebenhausen assets – Schirm Germany entered into a sale agreement with German-based private buyers to dispose of its assets in Baar-Ebenhausen including the operations, property, fixed assets and inventory relating to the site.

Schirm Germany is a contract manufacturing services focusing on agrochemicals and specialty chemicals, with capabilities spanning synthesis, formulation and packaging, together with related supply chain solutions. The German operations function across three key facilities, namely Baar-Ebenhausen (“BEH”), Lübeck (“HL”) and Schönebeck (“SBK”). BEH and HL concentrate on formulation, filling and packaging (“FFP”) operations, while SBK supports both FFP and synthesis, with additional specialised manufacturing functions.

The successful conclusion of the BEH disposal, on 30 June 2025, resulted in all risks and rewards associated with the BEH assets transferring to buyers. AECI will benefit from a c.EUR3 million saving resulting from future restructuring costs and environmental liabilities associated with the asset.

Disposal of the Food & Beverage division – AECI has sold Food & Beverage (“F&B”) business as a going concern to a South African-based private equity company.

The Food & Beverage (“F&B”) division supplies a range of technology driven and consumer-led additives, ingredients and processing aids including products and solutions for the beverage, dairy, health and nutrition and commodities industries.

The F&B Business operates as a division of AECI and will transfer to its new owners in its entirety. The transaction will not disrupt ongoing operations, customers or employees, ensuring business continuity as the division moves forward under its new owners.

Comment from management

In line with AECI’s strategic direction unveiled in November 2023, the Group announced plans to divest from non-core businesses, including Schirm GmbH, which operates in Germany and the United States (US), Sans Fibres US, Food & Beverage and Animal Health and the now disposed Much Asphalt business (Managed Businesses). These disposals are in line with the Group’s strategy of streamlining its portfolio to focus on its core business of Mining and Chemicals services.

Holger Riemensperger, Chief Executive of AECI Group, commented: “The disposal of the Managed Businesses is part of our ongoing work to simplify and strengthen AECI’s portfolio, allowing us to concentrate efforts on the sectors where we have strong market positions and exciting opportunities for international expansion.”

The conclusion of these transactions is expected to generate proceeds that will allow the Group to continue fulfilling its commitments and improving certain key performance indicators, particularly free cash flow generation.

Riemensperger further commented: "We committed to using proceeds from the sale of our non-core business to reduce debt and reinvest into our core business. With the reduction in our Group debt, following the divestment of Much Asphalt and taking into account our current business performance, we are comfortable with our debt levels and have begun exploring inorganic growth opportunities for our business.”