Owego, New York-based Upstate Shredding LLC has submitted a nonbinding offer to acquire all outstanding common stock shares of Westchester, Illinois-based Fenix Parts Inc. Although based in Illinois, Fenix operates 15 auto salvage and recycling facilities in New York, New Jersey, Pennsylvania, Georgia, North Carolina, Florida and Ontario, Canada.
In a letter sent by Upstate CEO Adam Weitsman to Kent Robertson, president and CEO of Fenix Parts, Upstate has offered 50 cents per share for Penix stock, which Weitsman writes “represents an attractive all-cash premium of approximately 46 percent over the company’s closing price of 27 cents on Feb. 8, 2018.”
Weitsman adds in his letter, “Fenix is in the business of automotive recycling and has many characteristics that are attractive to Upstate. We are eager to work with the company on this proposal and want to open a collaborative line of communication as soon as possible.”
He also writes, “Our offer would be funded with cash on-hand and not subject to any financing condition. To facilitate a transaction, we have engaged Olshan Frome Wolosky LLP as our legal counsel. We are prepared to move expeditiously and cooperatively to complete a transaction and are available to discuss this proposal with Fenix’s board of directors at your earliest convenience.”
Weitsman describes Upstate Shredding as “the East Coast's largest privately owned scrap metal processor and one of the largest in the United States, [operating] from 16 locations located throughout the northeast [that] are collectively capable of processing over 1 million tons of ferrous scrap and 200 million pounds of nonferrous scrap.