Steel Dynamics Inc. has announced the completion of its acquisition of Zimmer, S.A. de C.V. The company said the purchase is part of its raw material procurement strategy to support its new Texas flat roll steel mill, which is planned to begin operations in mid-2021. The transaction was funded with available cash.
Zimmer is headquartered in Monterrey, Mexico, and operates a ferrous and nonferrous scrap metals recycling business. Zimmer's primary operations are comprised of six scrap processing facilities strategically positioned near high-volume industrial scrap sources throughout Central and Northern Mexico. The company also operates several third-party scrap processing locations. They currently ship approximately 500,000 gross tons of scrap annually and have an estimated annual processing capability of 2 million gross tons.
"We sincerely welcome the Zimmer team into the Steel Dynamics family," said Mark D. Millett of Auburn, president and chief executive officer of Steel Dynamics. "Combined with our existing metals recycling presence in Mexico, the acquisition of Zimmer expands our commercial presence in the region and strengthens our raw material supply strategy, allowing for cost-effective ferrous scrap procurement for our new Texas flat roll steel mill. Zimmer provides a platform to grow our metals recycling presence in Mexico and represents a meaningful achievement in our raw material sourcing strategy for our Texas flat roll steel mill."