Sims Metal Management Ltd., New York, has announced plans to raise about $365 million via an underwritten private financing arrangement. Additionally, the company is seeking to raise another $68 million in additional equity through issuing additional shares of stock.
The company says that the money raised will be used to provide the company with the flexibility to pursue its growth agenda, including accelerating the company’s acquisition growth strategy and currently identified capital expenditures relating to technology efficiencies. The announced agenda will include both the Metal Recycling division and its Sims Recycling Solutions (SRS) business.
The company has noted that since the completion of the Metal Management merger in March 2008, the company has spent around $168 million for acquisitions. Some of the deals include North Coast Recyclers, Australia; Life Cycle Services, U.K. (through SRS); Clearhouse Technology, Australia; Evans & Mondon, U.K.; C Herring & Son Ltd, U.K.; Weinert Recycling, United States; and Global Investment Recovery, Inc., U.S. (through its SRS division); All Metal Recovery, U.K.; Fairless Iron & Metal, U.S.; Technorecycle, Germany; and the acquisition of a joint venture partner’s 50 percent stake in Port Albany Ventures in the U.S.
The company also has what it calls a strong pipeline of capital expenditures that will yield returns, including the global roll-out of metal recovery technology and specific facility construction initiatives.
Development of new technologies has been a focus for Sims in recent years, it says. Sims Metal Management intends to roll out globally what it calls third-generation downstream shredder technology to facilitate greater recovery of nonferrous metals and reduce waste going to landfills. The technology is already being used within the company, according ot a Sims news release.
Sims Metal Management is also investing in its metal recycling and SRS operations through the construction of an electronics recycling facility in Canada; an aerospace recycling facility in Connecticut; and the NYCRC recycling facility in New York, which is still in the planning and construction phase, says Sims.