Sims Metal, a leading recycling company, announced an agreement to purchase the assets of Baltimore Scrap Corp (BSC) and its subsidiaries. The acquisition is expected to be completed in October 2023.
The total consideration for the acquisition will be US$177 million, with adjustments to be determined at closing. Funding for the acquisition is expected to come from sales of non-core assets and underperforming assets.
Sims Metal aims to meet the increasing demand for ferrous and non-ferrous scrap metal from the US domestic market. The company aims to integrate the Baltimore Scrap Corp team and its subsidiaries into its operations.
BSC is one of the largest recycling companies in the Northeast America, with 17 facilities in Maryland, Virginia, Pennsylvania, New York and New Jersey. The company, which has an annual sales volume of approximately 600,000 tons, operates four shredders along with railway, barge and port infrastructure. It is positioned to serve both local and export markets.
Headquartered in Sydney, Australia, Sims Metal has grown from a local company to one of the largest players in the global metal recycling industry. The company recycles about 10 million tons of metal annually.