Omnisource to buy out Recycle South

Archiv – Steel producer Steel Dynamics Inc. says its recently acquired subsidiary Omnisource has agreed to buy the remaining interest in fellow US company Recycle South LLC in a cash and stock deal valued at about US$370 million to expand its recycled metals business.
Recycle South equity owners will receive about 3.9 million Steel Dynamics shares, which the company valued at about US$138 million, and US$232 million in cash. The companies value the deal at US$500 million, which includes US$135 million in debt and other liabilities.United States | Steel producer Steel Dynamics Inc. says its recently acquired subsidiary Omnisource has agreed to buy the remaining interest in fellow US company Recycle South LLC in a cash and stock deal valued at about US$370 million to expand its recycled metals business.
Recycle South equity owners will receive about 3.9 million Steel Dynamics shares, which the company valued at about US$138 million, and US$232 million in cash. The companies value the deal at US$500 million, which includes US$135 million in debt and other liabilities.
Steel Dynamics subsidiary OmniSource Corp. already owns a 25% interest in the Spartanburg, South Carolina based scrap metal recycling company. The transaction will significantly expand Steel Dynamics’ recycled metals business, the company says. The additional capacity will bring the company’s total annual ferrous scrap processing capacity to about 7 million tonnes.
The boards of both companies have unanimously approved the transaction. Subject to regulatory approval, the deal is expected to close before the end of the second quarter. Recycle South has 600 employees and operates in 19 locations throughout the Carolinas and Georgia. The company will operate as a division of OmniSource and will be called OmniSource Southeast. All current management will remain in place, Steel Dynamics adds.