JSE-listed AECI has confirmed the sale of three more noncore businesses in the US, Germany and South Africa as part of a far-reaching restructuring initiated in 2023 to focus the company on its core mining explosives and chemicals operations.

In a statement the company confirmed the disposal of Schirm USA, the Baar-Ebenhausen assets in Schirm Germany, as well as its food & beverage division.

Through its wholly-owned subsidiary Schirm Germany, AECI said it had entered into a R1.1-billion asset purchase agreement with Liberation Chem-Toll for Schirm USA, a chemical toll manufacturer with formulation, packaging and warehouse facilities located in north Texas and southern Illinois.

The company processes and produces chemicals for customers in various industries including agriculture, industrial chemicals and speciality products.

The transaction is expected to close on/or before August 30, and is subject to the fulfilment or waiver of some conditions precedent. 

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

“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 €3-million saving resulting from future restructuring costs and environmental liabilities associated with the asset.”

The food and beverage business, meanwhile, has been sold as a going concern to a South Africa-based private equity company. 

Having operated as an AECI division, the business supplies a range of additives, ingredients and processing aids, including products and solutions for the beverage, dairy, health and nutrition and commodities industries. 

CEO Holger Riemensperger said the disposals would allow AECI to concentrate on sectors where it had a strong market position and give it an opportunity to expand internationally.

"We are committed to using proceeds from the sale of our noncore 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,” he added.

In the first half of 2025, Much Asphalt was sold for R1.1-billion, which was central to AECI paying off debt of R1.4-billion during the period, and reducing its net debt to R3.4-billion and its gearing ratio to 28%.