Icahn Enterprises L.P. (IEP), Sunny Isles Beach, Florida, has announced plans to sell 100 percent of its interests in Mayfield Heights, Ohio-based PSC Metals LLC to Orange, California-based SA Recycling LLC for about $290 million. PSC operates scrap metal processing facilities across North America in Ohio, Pennsylvania, Indiana, Illinois, Missouri, Kentucky, Georgia and Alabama.
Icahn Enterprises reports that it had PSC Metals on its balance sheet at a value of $141 million as of June 30.
According to a news release from Icahn Enterprises, the transaction is expected to close by the end of the year.
“Icahn Enterprises acquired its interest in PSC Metals in 2007,” says Carl Icahn, chairman of Icahn Enterprises. “Even under challenging circumstances created by volatile commodity markets over the past several years, we executed our activist playbook with this investment, significantly increasing EBITDA. Given the cyclical nature of the company’s industry, we believe today’s transaction is appropriately timed and provides a very positive outcome for IEP unitholders.”
Icahn Enterprises plans to retain ownership of a parcel of land previously owned by PSC Metals located near downtown Nashville, Tennessee. According to Icahn Enterprises, it will lease that land to SA Recycling in connection with the transaction.
SA Recycling told Recycling Today it did not want to provide additional comments on the acquisition at this time.