Derichebourg SA has signed a binding agreement to acquire 100% of the share capital of Scholz Recycling. This strategic acquisition is a cornerstone of Derichebourg's international growth strategy, designed to consolidate its position as a global leader in the metal recycling sector. The transaction emerged from a competitive auction process conducted by independent receivers, initiated after the enforcement of securities at Scholz's parent holding company, Chiho Environmental Group Limited. Derichebourg successfully secured the deal, highlighting its strong financial position and industrial strategy. It was noted that Scholz is an operationally sound and financially healthy company, with its activities being distinct and preserved from its parent's difficulties. The strategic rationale for the acquisition is threefold: it significantly expands Derichebourg's operational footprint into key European territories where it has a limited presence; it positions the combined entity to capitalize on the decarbonization of the European steel industry, which is increasing its demand for high-quality scrap metal for electric arc furnaces; and it aims to optimize operational efficiency through complementary logistics and commercial synergies. The deal, which is subject to customary regulatory approvals, is expected to close in the second half of 2026 and is anticipated to be accretive to earnings per share in the medium term.

SCHOLZ RECYCLING, which reported an EBITDA margin of LOGIN in 2025, is valued in this transaction at an EV/EBITDA multiple of LOGIN.

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