Unimetals takeover of Sims UK in the balance

UK-based metals recycler Unimetals Recycling faces financial uncertainty following its acquisition of the UK operations of Sims Metal.

Various reports indicate the problem is an inability to complete outstanding payments on the deal amid funding shortfalls and the withdrawal of a key investor.

Final instalment

In August 2024, Unimetals agreed to buy all 28 of Sims Metal sites in the UK, including port facilities and shredders, in a £195 (EUR 224 million) transaction. Sims received initial payments and expected deferred payments tied to residual assets and working capital.

However, Unimetals has failed to meet its final instalment (estimated at between £35 million to £55 million).

The company attempted to restructure and recapitalise but has now filed a ‘notice of intention’ to appoint administrators, a formal step towards insolvency protection in the UK.

Investor withdraws

A spokesperson from Unimetals, quoted in LetsRecycle, said: ‘In recent months we have been working to refinance and recapitalise Unimetals Recycling to create additional liquidity and address the deferred consideration due to Sims.

‘It was recently confirmed to us that our main new investor would not participate in this funding round, despite the transaction being in near final form.’

With around 650 employees and dozens of sites at risk, Unimetals is looking to secure rescue capital to protect its operations.