Structural Metals Inc., a subsidiary of Commercial Metals Co. (CMC), has entered into a definitive agreement to purchase Newell Recycling of San Antonio LP, located in San Antonio.
CMC says it anticipates the acquisition will be completed by June 13, 2014, contingent upon satisfaction of customary closing conditions.
Following the sale, Newell Ltd. will retain its media plant operation at the San Antonio site as well as the shredding plant operations of Newell Recycling in Eagle Pass, Texas.
Along with the purchase of the Newell Recycling’s assets, CMC will acquire a complete 80-inch-by-104-inch shredder with a 4,000-horsepower Alston motor from The Shredder Co. CMC says it will evaluate the current shredder capacity in central Texas and determine in the next six to 12 months the most beneficial location to install the shredder.
CMC says the acquisition of the assets of Newell Recycling continues its vertical integration by providing raw materials for its CMC Steel Texas location. Additionally, the acquisition gives CMC a larger recycling presence in San Antonio and provides an opportunity for continued growth of the company’s recycling operations in the central Texas area.