Metalico Inc. has completed the purchase of the operating assets of two companies: Youngstown Iron & Metal and Atlas Recycling, both located in Youngstown.
The acquisition includes all inventory and equipment and will include all real estate owned by affiliates of the sellers and used in their businesses. The purchase price was not disclosed.
Acquired assets include a Newell 80-104 auto shredder located directly adjacent to YIM's key consumer, V&M Star, a leading producer of seamless Oil Country Tubular Goods.
The shredder is supported by three other nearby locations, including a ferrous and non-ferrous feeder buying yard in Warren, Ohio, and related transportation and maintenance facilities.
YIM, over the last two years, averaged $50 million of annual revenue and sold an annual average of 105,000 gross tons of scrap steel and about 15 million pounds of non-ferrous products. The YIM operations complement Metalico's Akron, Ohio scrap operations, while Metalico’s Pittsburgh regional scrap operations are only 70 miles of the new facilities. YIM will draw on Metalico's extensive network of scrap suppliers and its capital resources to greatly increase operating capacity and utilization at the shredder and elsewhere in the operations.
"The Youngstown purchase is consistent with Metalico's expansion strategy of penetrating geographically contiguous markets and extracting the operating synergies that surface in consolidation," said Carlos Aguero, Metalico’s president and CEO.
"As a result of the weak economy and the tight credit conditions today for smaller, family owned companies, we are finding realistically valued acquisition opportunities in markets we target for expansion," he continued.