Posted on 16 Aug 2023
Australian metal recycling firm Sims has agreed to acquire the assets of United States based metal recycler Baltimore Scrap Corp and its affiliated entities (BSC) for $177 million, Kallanish notes.
Sims says in a statement that the acquisition is anticipated to close in October, 2023.
Total consideration for the acquisition is $177 million, plus working capital and other adjustments to be determined at closing.
This transaction is consistent with Sims’s strategy to grow its core metal recycling business in large markets, by operating best-in-class assets and producing high-quality outputs, with efficient logistic channels to an expanding customer base.
BSC is one of the largest metal recyclers in the United States northeast with 17 facilities across five states - Maryland, Virginia, Pennsylvania, New York, and New Jersey with sales volumes of approximately 600,000 tonnes/year.
Its operations include four shredders and extensive rail, barge and port infrastructure and are well-positioned with attractive proximity to both growing domestic demand markets and export.
“This acquisition is a highly complementary fit with Sims’ strategy to expand our metal recycling business in North America, and increase our diversity of sales channels to growing US domestic demand for ferrous and non-ferrous scrap metal,” Sims chief executive officer and managing director Alistair Field says.
Sims chief financial officer Stephen Mikkelsen adds that the BSC acquisition is another example of Sims’ capital recycling strategy.
“We anticipate the acquisition to be substantially funded through the redeployment of proceeds from non-core asset sales and other assets that are not likely to achieve their required rate of return,” he says.
Source:Kallanish
