Company to use the proceeds to pay down debt.
The board of directors of the metals recycling company Metalico, based in Cranford, New Jersey, has announced plans to divest what it calls “certain noncore assets” and use the proceeds to pay down debt. The decision to sell off assets was formalized following the company’s 2014 annual stockholders meeting June 3, 2014.
“We've identified assets that are less synergistic with our strategy of growing our core scrap yard and shredder network and we’ve begun the [divestment] process," says Carlos Agüero, Metalico president and CEO.
Agüero adds, “The debt burdens carried by some in our industry since the commodities markets began to turn in 2008 and 2009 have impacted many recyclers. We understand that reducing our leverage is the best way to combat the overcapacity and weakness in pricing that continue to challenge the scrap metal business. Metalico intends not only to reduce leverage but to remain a market leader in its industry.”