Sims Metal Management Limited, the world's largest listed metal and electronic recycling company, announced Monday the sale of its Arizona scrap metal recycling assets to SA Recycling (SAR). SA Recycling is a joint venture owned equally by Sims and Adams Steel, and has operations in California, Nevada and Arizona. The sale was effective November 30.
The sale was settled at a price of US$35 million in cash. The sale principally involves the real property related assets for two scrap metal recycling facilities located in Phoenix and Tucson, Arizona.
Daniel W. Dienst, Group Chief Executive Officer of Sims MM stated, "The sale of our Arizona assets, following on the heels of our recent dispositions of our Colorado assets, our joint venture interest in Nashville and the acquisitions of assets and businesses in Alabama and Maryland over the past few months, is part of our aggressive repositioning of our shareholders' precious capital to markets that offer the highest returns on invested capital and meet the long term strategic growth plans we have for the important North American market. The transaction also resolves issues related to the SAR joint venture agreement which granted Arizona as a territory to SAR, allowing us to operate, but to not otherwise expand in Arizona. We are pleased to have resolved this issue, while at the same time allowing our important joint venture partner in the Southwestern US to expand. In this transaction we will retain an interest in the profit and cash flow of the Arizona business through our 50 percent ownership in SAR."