Steel Dynamics Inc. (SDI), one of the US' leading steel producers, announced this week that its wholly-owned subsidiary, OmniSource, has completed the recently announced acquisition of another scrap company, Recycle South.
Scrap management company OmniSource (which already owned 25 percent of Recycle South) acquired the remaining 75 percent equity in Recycle South for a purchase price of approximately $515 million and the assumption of certain liabilities, including net debt of approximately $143 million. Recycle South will continue to focus on scrap processing, brokerage and scrap management, operating as a division of OmniSource Corporation, and will be called OmniSource Southeast.
SDI's chairman and CEO, Keith Busse, commented on the transaction: "The additional capacity of the Recycle South operations brings our company's total annual ferrous scrap processing capacity to approximately seven million tons. The addition of the Recycle South business to OmniSource will increase both the size and scope of our scrap operations, and establish a platform for continued growth."