Sims Metal has agreed to acquire the assets of U.S.-based metal recycler, Baltimore Scrap Corp (BSC) and its affiliated entities. The acquisition is anticipated to close in October 2023 subject to the satisfaction, or waiver, of customary closing conditions, including required regulatory approvals.
“The BSC 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.”
BSC is one of the largest metal recyclers in the American Northeast with 17 facilities across 5 states – Maryland, Virginia, Pennsylvania, New York, and New Jersey – with sales volumes of approximately 600,000 tonnes per annum. BSC’s operations include four shredders and extensive rail, barge and port infrastructure, and the business is well-positioned with attractive proximity to both growing domestic demand markets and export.
Total consideration for the acquisition is $177 million, plus working capital and other adjustments to be determined at closing.