Séché Environnement : International Acquisition in Industrial Services

Regulatory News:

Séché Environnement (Paris:SCHP) is announcing the acquisition from Befesa Group of 76% of the capital of Solarca, a company which specializes in industrial maintenance services using chemical cleaning.

This acquisition of a majority stake reinforces Séché Environnement's position in services with high added value for its main target industrial client bases, and in particular in the chemical, petrochemical and energy sectors.

For these clients, Solarca carries out cleaning operations on industrial sites, in particular using chemical, steam or air blowing cleaning technologies to ensure a perfect cleaning and a high quality level for dissolving and removing organic and inorganic matter on equipment (distillation towers, industrial boilers, tanks, etc.). Furthermore, Solarca recovers and processes the residues that result from these maintenance operations on its own premises.

These operations are essential to get new sites up and running (pre-operational chemical cleaning) and are also required for site maintenance (operational chemical cleaning) to prevent deterioration and maintain the highest level of safety for industrial processes.

Located on a niche and very technical market with high barriers to entry, Solarca is mainly active in Spain (Tarragona). The Company is also established in Europe (including in France, UK, Portugal) and in several regions around the world where it assists its clients (Latin America, Asia…).

With Solarca, Séché Environnement will reinforce its technological expertise and position itself near to its large international clients in the chemical and energy sectors, upstream from the industrial cycles, to tap into new flows of hazardous industrial waste.

This acquisition will also provide the Group with new bases that will boost its development in target areas abroad.

Solarca was created thirty years ago and thanks to its expertise and proprietary technologies it has become one of the world leaders in industrial maintenance services and process decontamination.

In 2016, Solarca employed about 110 members of staff and achieved revenues of around €17 million and EBITDA of around €4 million. Solarca will be included in Séché Environnement’s consolidation scope as of January 1, 2017.

The founding shareholder, Mr Joan Enric Carreres, will work with Séché Environnement to continue to support Solarca's global development. Séché Environnement has an option to acquire the remaining capital, which may be exercised in the next five years.

In Spain, Séché Environnement is a long-standing operator in the industrial effluent recovery sector through its subsidiary Valls Quimica, which specializes in solvent regeneration.

In France, Séché Environnement is also a major player in solvent regeneration and chemical purification through its subsidiary Speichim Processing.

In addition, in Latin America, Séché Environnement recently announced two acquisitions in Chile and Peru in hazardous waste recovery and processing¹, which will provide synergies with Solarca's service activities.

By adding to Séché Environnement's existing presence in these areas, this new operation illustrates its development strategy targeted at industrial companies on the hazardous waste services, recovery and processing markets, wherever they are located.

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About Séché Environnement

Séché Environnement is one of France's leading players in the recovery and treatment of all types of waste, from both industry and local communities.

Séché Environnement is the leading independent operator in France. It is uniquely positioned as a specialist in technical risk, at the center of the regulated waste treatment and recovery markets, which have high barriers to entry.

Its facilities and expertise enable it to provide high value-added solutions to its industrial and public authority clients, targeting the challenges of the circular economy and sustainable development requirements, such as:

• the material and energy recovery of hazardous and non-hazardous waste;
• all types of treatments for solid, liquid or gaseous waste (thermal, physical-chemical or radiation treatment);
• the storage of final hazardous and non-hazardous waste;
• eco-services such as decontamination, decommissioning, asbestos removal and rehabilitation.

Leveraging its extensive expertise, Séché Environnement has successfully developed its environmental services business lines in waste management outsourcing markets for its clientele of large communities and major industrial companies both in France and abroad.

Séché Environnement has been listed on Eurolist by Euronext since November 27, 1997.

It is eligible for equity savings funds dedicated to investing in SMEs and is listed in the CAC Mid&Small and Enternext PEA-PME 150 indexes.

Important notice

This press release may contain information of a provisional nature. This information represents either trends or targets at the date of the press release's publication and may not be considered as results forecasts or as any other type of performance indicators. This information is by nature subject to risks and uncertainties which are difficult to foresee and are usually beyond the Company's control, which may imply that expected results and developments differ significantly from announced trends and targets. These risks notably include those described in the Company’s Registration Document, which is available on its website (www.groupe-seche.com). This information therefore does not reflect the Company's future performance, which may differ considerably, and no guarantee can be given as to the achievement of these forward-looking figures. The Company makes no commitment on the updating of this information. More detailed information on the Company can be obtained on its website (www.groupe-seche.com), in the Regulated Information section. This press release does not constitute an offer of shares or a solicitation in view of an offer of shares in any country, including the United States. Distribution of this press release may be subject to the laws and regulations in force in France or other countries. Persons in possession of this press release must be aware of these restrictions and observe them.

¹ See press release of March 29, 2017.

Compartment B – ISIN: FR 0000039139 – Bloomberg: SCHP.FP – Reuters: CCHE.PA
CAC MID & SMALL Index and ENTERNEXT PEA-PME 150 Index

Registered office: Les Hêtres – BP 20 – 53811 Changé Cedex

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