Metso Acquiring Texas Shredder

Metso Minerals has acquired Texas Shredder, Inc., a supplier of metal shredder products headquartered in San Antonio, Texas. The sellers are a group of private investors led by Capital Southwest Corp., a venture capital investment company. The acquisition price is about $16 million.

Texas Shredder has unaudited net sales of about $56.5 million for the most recent fiscal year.

With the acquisition, Metso Minerals strengthens considerably its position in the North American metal recycling market. Texas Shredder also complements Metso's downstream technology solutions and aftermarket capabilities. Texas Shredder's large installed base comprises over 60 shredder plants.

The acquired company will be merged with Metso Minerals' current metal recycling operations in to form a new company, Metso Texas Shredder, Inc.

Metso's recycling business has developed favorably since it became a part of Metso Minerals in the Svedala acquisition in 2001: The net sales have nearly doubled in two years. Following the acquisition of Texas Shredder, net sales are expected to reach $245 million.