Eldridge plays role in Scrap Management Industries acquisition

New York-based Eldridge Diversified Credit has announced the closing of a $120 million term loan facility with Kansas City, Missouri-based Scrap Management Industries (SMI).

The arrangement supports SMI’s 2025 acquisition of Allmetal Recycling and its network of 10 locations in Kansas.

“With this significant combination, SMI will operate five shredders across 19 yards in three primary regions serving Missouri, Kansas and Oklahoma,” states Eldridge Diversified Credit, which describes itself as a private, liquid and asset-based credit investment business unit of Eldridge Capital Management.

“The acquisition of Allmetal Recycling will be extremely transformational for SMI and would not have been possible without the capital provided by Eldridge, who were a terrific partner throughout the entire process,” says Keith Rhodes, chief financial officer at SMI. “We look forward to deepening our relationship as we continue to grow.”

“We are pleased to be a part of this transaction and provide meaningful capital to SMI,” says Dave Schubel, senior director at Eldridge Capital Management. “This acquisition provides the company with a unique, dominant market position, backed by a strong ownership group and experienced management team [and] we remain committed to supporting SMI with future capital needs as they continue to scale the business.”

Eldridge Diversified Credit says it invests in and provides asset-secured loans and leases to companies in the manufacturing, energy and power, maritime, chemicals, metals, technology, aircraft and railcar sectors. Since 2015, Eldridge says it has originated more than $17.5 billion of asset-based transactions.