French environmental services group Derichebourg S.A. agreed to acquire German rival Scholz Recycling, a move that creates a European leader in the circular economy for ferrous and non-ferrous metals and sent Derichebourg’s shares up nearly 5 percent. The transaction adds Scholz’s €1.6 billion in annual revenue to Derichebourg's top line.
"The combination will create a European heavyweight in the circular economy for ferrous and non-ferrous metals," Scholz said in a statement. The deal strengthens Derichebourg's position in the European market and supports the decarbonization of the steel industry, which is increasingly shifting to electric arc furnaces that require recycled scrap metal.
The acquisition follows a competitive sale process for Scholz, which is being sold by the receivers of its financially distressed parent company, Chiho Environmental Group. Derichebourg will fund the purchase, whose price was not disclosed, using existing cash and credit lines. Derichebourg’s stock rose to €9.35 on the announcement, just above a key technical resistance level.
The deal is expected to be completed in the second half of 2026, subject to merger control and foreign investment approvals. For Derichebourg, the acquisition expands its geographic footprint into Germany, Poland, and the Czech Republic, adding over 180 sites and 3,500 employees. The company guided for an EBITDA between €320 million and €350 million for the 2025/2026 fiscal year, with the addition of Scholz expected to be accretive to earnings per share in the medium term.
This article is for informational purposes only and does not constitute investment advice.
