Horsehead Holding Corp., the parent company of zinc producer Horsehead Corp. plans to acquire INMETCO, a recycling company based in Ellwood City, Pa., for $34 million in cash.
INMETCO operates the only secondary smelter in North America dedicated to recycling nickel, chromium and other metals from hazardous and non-hazardous wastes generated mostly by stainless steel and specialty metals producers. The company also is a processor of nickel-cadmium batteries, and its process has been recognized by the U.S. EPA as the Best Demonstrated Available Technology for the recycling of nickel cadmium batteries. The company is an indirect, wholly owned subsidiary of Vale Inco Ltd., a producer of nickel, copper and cobalt.
Last year, INMETCO generated earnings of $12.8 million on revenue of $61.1 million on total remelt alloy shipments of about 27,000 tons.
Jim Hensler, chairman, president and CEO of Horsehead, noted that the combination of the two companies will boost Horsehead’s hazardous waste services platform and diversify its range of capabilities and products including the recycling of electric arc furnace dust and stainless steel flue dust for the recovery and reuse of a wide range of valuable metals.
“The acquisition of INMETCO expands Horsehead’s industrial metals portfolio while leveraging our key strengths in hazardous waste management and high temperature metals recovery,” Hensler added.
The acquisition is expected to close on December 31, 2009, subject to the satisfaction or waiver of customary closing conditions.