Industrial Services of America Inc. (ISA), Louisville, Kentucky, has entered into an agreement to sell substantially all of its assets to Kentucky’s largest scrap recycler.
ISA is being sold for $23 million to River Metals Recycling, a subsidiary of the Cincinnati-based David J. Joseph Co., according to a news release. The transaction is expected to close in the fourth quarter of 2019 or first quarter of 2020.
The acquisition was announced days after ISA received warning from the Nasdaq Stock Market LLC that the company was not in compliance with the minimum closing bid price requirement set forth in Nasdaq Rules for continued listing on the Nasdaq Capital Market. Based on the closing bid of ISA’s common stock for the 30 consecutive business days from June 20 to Aug. 5, ISA no longer met the minimum bid price requirement of $1 per share.
River Metals says it intends to hire substantially all of ISA’s employees immediately after the closing of the transaction, according to the release.
“ISA has a long and proud history, dating back to its founding by Harry Kletter in the mid-1950s,” says ISA CEO Todd Phillips. “I’m excited that the ISA legacy will live on within River Metals and The David J. Joseph Co. As the consolidation of the domestic steel recycling industry continues, our board, its special committee and management became convinced that combining the ISA business with River Metals will lead to the best outcome for our shareholders, our employees, our customers and our suppliers.”
Founded in 1954, ISA, which buys, processes and markets ferrous and nonferrous metals and other recyclables, was one of the first publicly traded waste and recycling companies in the U.S., according to the company’s website.
ISA reported a net loss of $441,000 for the first quarter of 2019. Results were affected by lower selling prices of ferrous and nonferrous in 2019 compared with 2018, the company says.