Metalico Buys Goodman Services

Metalico Inc. has acquired Goodman Services Inc., a Bradford, Pa.-based metal recycling company. In addition to Bradford, Goodman operates scrap metal plants in Jamestown, N.Y., and Canton, Ohio.

Goodman’s main business is purchasing and processing ferrous and nonferrous scrap metal from industrial accounts. The company's Jamestown yard purchases some peddler scrap and supports the industrial business. Goodman also provides offsite material handling and packaging services to Timken’s steel facility in Canton.

Goodman's senior management, including Michael Goodman and Timothy Sampson, will remain as managers of the company.

In 2010 Goodman reported sales of $22 million and processed around 42,500 tons of ferrous scrap and 6 million pounds of non-ferrous scrap. Additionally, Goodman provided tolling services of around 21,000 tons.

In making the purchase, Metalico notes that Goodman’s Bradford facility will become a feeder yard for Metalico’s Pittsburgh-area shredder.

Metalico also says that Goodman’s facilities in Jamestown and Canton are near Metalico’s operations in Buffalo and Akron, respectively.

"The Goodman purchase is consistent with Metalico's expansion strategy of penetrating geographically contiguous markets and benefiting from intercompany and operating synergies that are available through consolidation," says Carlos Aguero, Metalico’s president and CEO.

"We welcome Goodman Services to the Metalico group of companies, and we are pleased to have the Goodman family remain on board to continue managing and growing the company well into the future."

In related news, Metalico notes that the expansion of its senior credit arrangements takes the aggregate commitment under its Credit Agreement up to $85 million, including revolving credit and term loan facilities. The company intends to use its additional availability for additional acquisitions that it expects to complete this year, for working capital needs and for general corporate purposes.