Sims Mulling Big Acquisition

Several reports have indicated that Sims Group is considering making a large acquisition in the U.S. scrap metal market.

 

Recent reports note that Sims Group, the Australian-based scrap recycling company, is looking at making a significant acquisition in the North American market. A deal could be announced within the next several weeks.

 

According to The Age, an Australian newspaper, Sims is looking at the privately owned Hugo Neu scrap metal operations in the U.S., which have just been separated from a joint venture with Schnitzer steel. According to the newspaper, the company is on the market. After completion of the joint venture, Hugo Neu is expected to be left with around 2.3 million metric tons of scrap metal processing volume.

 

The deal could be worth around $480 million. Sims handles around 5 million metric tons of ferrous scrap a year.

 

Another article noted that Jeremy Sutcliffe, the head of Sims Group, has been looking to expand its operations into the United States. Sims Group has been growing through greater focus on the China market. The possible addition of Hugo Neu operations, including its large export port facilities in New York City and Los Angeles, would give the company direct access to both large supplies of scrap recyclables, as well as direct access to deepwater ports.

 

The Sims operation in the US was virtually doubled in size 12 months ago when it bought Bay Bridge Enterprises in Virginia and took control of a new 4500 kilowatt "mega-shredder" in the same state, according to Dow Jones.

 

The Dow Jones article also noted that other possible U.S. acquisitions include the David J Joseph company.

Get curated news on YOUR industry.

Enter your email to receive our newsletters.

Loading...