Fort Wayne, Ind.-based Steel Dynamics Inc. (SDI), through its OmniSource Corp. subsidiary, has acquired full ownership of Recycle South, a multi-location scrap company in which OmniSource already owned a 25 percent stake.
Spartanburg, S.C.-based Recycle South was formed in August 2007 with the merger of Carolinas Recycling Group and Atlantic Scrap and Processing. Recycle South is headquartered in Spartanburg, S.C.
Terms of the agreement, which has been unanimously approved by the boards of directors of both companies, call for OmniSource to acquire remaining equity interests in the transaction, valued at approximately $500 million.
Current Recycle South equity owners will receive nearly 4 million shares of Steel Dynamics’ common stock, valued at approximately $138 million, as well as $232 million in cash. The aggregate transaction value includes the assumption of certain liabilities, including net debt, which are expected to total approximately $135 million at closing. Completion of the transaction is subject to regulatory approval and is expected to close before the end of the second quarter of 2008.
Recycle South has operations in North Carolina, South Carolina and Georgia. On an annualized basis using actual results from September of 2007 to March of 2008, the company generated revenues of approximately $670 million from the processing of 1.4 million tons of ferrous scrap and 150 million pounds of nonferrous scrap.
Following the acquisition, the company will operate as a division of OmniSource Corp. under the name OmniSource Southeast. As part of OmniSource, all current management will remain in place.
"This transaction significantly expands our recycled metals business platform created by the acquisition of OmniSource in October of 2007," Keith Busse, chairman and CEO of Steel Dynamics, says. "It demonstrates SDI’s strategic commitment to the continued expansion of ferrous and nonferrous recycling, which is an important element of our overall growth plan."
Busse says the additional capacity of the Recycle South operations brings the company’s total annual ferrous scrap processing capacity to approximately 7 million tons.
Danny Rifkin, president of OmniSource, says, "This transaction demonstrates the company’s willingness to capitalize on growth opportunities within the scrap processing segment and expand our geographic footprint into a region where both industrial and obsolete scrap generation is increasing."
Marvin Siegel, chairman and CEO of Recycle South adds, "Our existing working relationship will make for a natural transition, allowing us to sustain our growth pattern and maintain the highest level of service to our customers. Our strength has always been based in the Southeast, and we are now excited to provide regional leadership as part of a larger network of companies."
In late May, Recycle South announced the acquisition of three North Carolina companies that operate under mutual ownership: Cohen & Green Salvage Co., Lumberton Recycling Co. and Raeford Salvage Co. As a result of the acquisitions, Recycle South now operates 22 scrap metal processing facilities in the Carolinas and Georgia with approximately 700 employees.
More information on Steel Dynamics is available at www.steeldynamics.com, while additional information on OmniSource can be found at www.omnisource.com.
SA Recycling Acquires West Coast Recycling FirmAnaheim, Calif.-based SA Recycling, a joint venture between Sims Group Ltd. and Adams steel, has acquired Pacific Coast Recycling (PCR) of Long Beach, Calif., from Mitsui & Co., with U.S. head quarters in New York. PCR operates seven facilities in California, including a large facility at the Port of Long Beach.
According to published reports, the company ships approximately 1 million tons of scrap metal per year.
Sims, based in Australia, has been growing its presence in the United States following its acquisition of Chicago-based Metal Management in an all-stock deal last year.
ArcelorMittal Buys Canadian Metals RecyclerArcelorMittal has announced that it has signed an agreement to acquire Bakermet, a scrap metal recycler based in East Ontario, Canada.
Bakermet, which specializes in ferrous and nonferrous metals, processed nearly 130,000 short tons of ferrous and 40 million pounds of nonferrous metals in 2007. The plant, located near Ottawa, will help secure upstream self sufficiency in shredded metal for ArcelorMittal’s Contrecoeur mill (ArcelorMittal Montreal).
Jos Jacque, CEO of ArcelorMittal Long Carbon North America, says, "This acquisition further strengthens our access to and ownership of key raw material supplies."

Explore the July 2008 Issue
Check out more from this issue and find your next story to read.
Latest from Recycling Today
- Aduro joins PLASTICS, PSRA
- Rumpke awarded recycling contract in Bowling Green, Ohio
- VPPA and RISI to host pulp and paper summit in Vietnam
- Agilyx buys stake in Green Dot
- Meadow tabs aluminum as key to boosting beauty sector recycling
- Recycling industry stakeholders testify at Congressional hearing
- Missouri city expands recycling capabilities with funding from The Recycling Partnership
- Port of LA reports hectic June