Market
August 17, 2023
Sims to acquire US recycler
Global metal recycler Sims Limited has conditionally agreed to acquire ferrous recycler Baltimore Scrap Corp (BSC) and affiliated companies.
Operating 17 sites across Maryland, Virginia, Pennsylvania, New York and New Jersey, BSC sells around 600,000 t/y of scrap. It runs four shredders and has what Sims described as extensive rail, barge and port infrastructure.
“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,” said CEO and managing director Alistair Field.
BSC’s assets are well-positioned with attractive proximity to growing domestic demand markets and export, according to Australia-based Sims.
The acquisition is expected to close in October, subject to satisfaction or waiver of customary closing conditions, including regulatory approvals. Sims has agreed to pay US$177 M (€162 M), plus working capital and allowance for other adjustments to be determined at closing.
Chief financial officer Stephen Mikkelsen: “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.”
