Upstate Shredding CEO takes large stake in Metalico

Adam Weitsman, CEO of Upstate Shredding, an Owego, New York-based scrap metal processing firm, has purchased roughly 5.6 million shares of stock in Metalico Inc., a Cranford, New Jersey-based scrap metal processing company. With the purchase, Weitsman has a 9.5 percent stake in the company, making him the largest single shareholder.

Weitsman began purchasing shares in Metalico Jan. 6, 2015, buying 829 shares at a price of 29 cents per share. He continued to make purchases of Metalico stock on the open market, with the largest purchase, roughly 1.63 million shares, Jan. 16 at a price of 50 cents per share.

Metalico has struggled with profitability over the past year. Reflecting these challenges, during comments made in conjunction with the release of the company’s3Q 2014 results Nov. 14, 2014, Carlos Aguero, CEO of Metalico, said financial constraints had led the company to restructure some of its debt, resulting in some note holders having their debt converted into Metalico common stock.

Upstate Shredding, which Weitsman has grown into one of the largest privately owned scrap metal companies in the United States, has a significant presence in the Northeast, an area in which Metalico also has a substantial presence.