Le Lézard
Classified in: Mining industry, Environment, Business
Subject: TNM


NEW YORK, March 21, 2023 /CNW/ -- Sims Metal, a global leader in metal recycling, today announced that the company will acquire the commercial and operating assets of Pennsylvania-based Northeast Metal Traders (NEMT). The acquisition is anticipated to close in mid-April 2023.

NEMT, a non-ferrous scrap metal wholesaler and broker, operates a single-scale site in Philadelphia and has extensive supplier and end-consumer relationships that stretch across the eastern United States. NEMT is one of the largest copper recyclers in the U.S. They process and sell approximately 60,000 tons of non-ferrous metal per year.

The transaction consideration implies an EV/EBITDA multiple of 4.8x on a pre-synergies basis (including estimated working capital).

The NEMT acquisition is in line with the company's growth strategy, which includes the expansion of the non-ferrous business in North America (Sims Metal North America), and the allocation of growth capital expenditure toward assets that yield a minimum post-tax internal rate of return (IRR) of 15 percent.

Furthermore, it is consistent with Sims Metal's purpose and meets the core strategic elements of the merger and acquisition framework ? targeting businesses with operations in large markets, operating best-in-class assets with robust sales channels to an expanding customer base, and producing high-quality differentiated outputs. Disciplined capital allocation remains a focus for the business, and Sims Metal intends to fund this acquisition through recycling surplus and/or underperforming capital.

"We are very excited about this bolt-on acquisition and the opportunities it opens up for the Sims Metal North America business," said Alistair Field, managing director and chief executive officer of Sims Limited. "The Northeast brings commercial and operating synergies, as well as provides us with a significant and complementary footprint in Philadelphia."

This acquisition will substantially increase the copper volumes in the metal business, as the Northeast focuses predominantly on high-quality copper granulation. Furthermore, with the demand for copper scrap growing rapidly, it will strengthen Sims Metal's exposure to the energy transition and decarbonisation.

About Sims Metal
Founded in Sydney, in 1917, Sims Metal, has grown from being an Australian-centric company to one of the most significant metal recycling companies in the world. A division of Sims Limited, Sims Metal has bases of operation in Australia, the United Kingdom and the United States where the company buys and processes recyclable ferrous and non-ferrous metal and sells the recycled material to manufacturers in 30 countries. Each year, Sims Metal recycles approximately 10 million tons of metal across its global operations. In line with their shared purpose, create a world without waste to preserve our planet, Sims Metal is preparing for, and adapting to, the significant industrial and environmental changes in society and the industry. Visit www.simsmm.com to learn more. 

SOURCE Sims Metal

These press releases may also interest you

at 10:43
Princeton NuEnergy Inc. ("PNE", "company") today announced results from pouch cell tests conducted by Argonne National Laboratory which show excellent discharge capacity retention using cathode material directly recycled via PNE's unique...

at 10:40
Seventeen schools, cities and nonprofit organizations across the state will now have improved access to quality drinking water due to funding from the annual Missouri American Water Hydration Station Grant Program. Launched last year, the program...

at 10:30
AgriCapture is issued the first-ever avoided grasslands conversion carbon credits in Texas through a partnership with the property's landowner and the Texas Agricultural Land Trust to protect soil carbon and ensure that the property's native...

at 10:25
Addressing the global crises of climate change, biodiversity loss, and the related threats to human health and safety requires coordinated international goals that translate into local action. The United States, which has joined the multi-national...

at 10:25
Metrus Energy, a market leader in climate-positive investing, announced today the hiring of industry veteran Brad Jenkins as Vice President of Channels. With over 25 years of experience in the energy efficiency sector, Jenkins will lead the channel...

at 10:17
Cleveland-based electric mobility and portable battery manufacturer LAND announces it is ramping up production of its flagship two-wheel electric vehicle, The District, thanks to new Series A funding. The round allows LAND to expand its production...

News published on and distributed by: