Smorgon Steel is acquiring the operating assets of Industrial Metal Recyclers for an undisclosed sum. (IMR was profiled in the July 2003 issue of Recycling Today magazine.)
IMR operates four locations in Maine. The locations add to the Smorgon Steel's U.S. scrap recycling facilities, which include existing sites in Chesapeake, Va., and Tampa, Fla.
At present, privately owned IMR handles about 100,000 metric tons of ferrous scrap and 10,000 metric tons of nonferrous scrap per year, representing about 50 percent of the Maine recycling market.
"This transaction will enable us to efficiently build on our earlier acquisition of the ITI assets in Virginia and Florida," says Smorgon Steel's Managing Director and CEO, Ray Horsburgh.
"Like ITI," he adds, "the IMR assets are well-located relative to both rail and port facilities, enabling us to efficiently service both domestic and export markets with processed scrap metal."
"Around 75 percent of IMR's business is based on the peddler trade," notes Shane Grice, CEO of Smorgon Steel Recycling, "and this, combined with Maine's geographical location, provides us with a sound business base in the Northeast."
He adds, "We see opportunities for further expansion, both in the USA and Canada."
Smorgon Steel has recruited an experienced American recycling executive who will lead the existing strong management team. Identified key personnel will sign employment contracts.
The acquisition, which will be funded using existing debt facilities, will be earnings accretive in the first year of ownership and is expected to be completed early in 2007.