Icahn Enterprises L.P. (IEP), Sunny Isles Beach, Florida, has announced that its American Entertainment Properties Corp. subsidiary has completed the sale of its equity interests in Mayfield Heights, Ohio-based PSC Metals LLC to Orange, California-based SA Recycling LLC for total cash consideration of approximately $323 million. The company reports that the deal is subject to customary postclosing adjustments.
Icahn Enterprises initially announced the deal in late October. PSC operates scrap metal processing facilities across North America in Ohio, Pennsylvania, Indiana, Illinois, Missouri, Kentucky, Georgia and Alabama.
As of Sept. 30, Icahn Enterprises carried PSC Metals on its balance sheet at a value of $147 million.
Icahn Enterprises reports that it has retained ownership of a parcel of land previously owned by PSC Metals that is located near downtown Nashville, Tennessee. In connection with the transaction, Icahn Enterprises has leased this land to SA Recycling.
“Icahn Enterprises acquired its interest in PSC Metals in 2007,” says Carl C. 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 [earnings before interest, taxes, depreciation and amortization]. … We believe today’s transaction is appropriately timed and provides a very positive outcome for IEP unitholders.”
Recycling Today reached out to SA Recycling for comment on the acquisition but did not receive a response.