Sims Metals has acquired Baltimore Scrap, one of the largest metal recyclers in the north-east of the USA. The total acquisition package is put at is US$ 177 million (EUR 163 million) and is anticipated to close in October, subject to regulatory approval.
Baltimore Scrap has 17 facilities across Maryland, Virginia, Pennsylvania, New York, and New Jersey with sales volumes of approximately 600 000 tonnes per annum. Its operations include four shredders and extensive rail, barge and port infrastructure. Sims says the business is well-positioned with proximity to both growing domestic markets and export.
‘Baltimore Scrap is a company we have admired for many years,’ says ceo Alistair Field. ‘This acquisition is a highly complementary fit with our strategy to expand the 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.’
Chief financial officer Stephen Mikkelsen, who takes over from the retiring Field on 1 October, adds, ‘The acquisition is another example of our 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.’