- Metals and electronics recycling company Sims (SGM) has increased its North American footprint by purchasing assets from leading aluminium processor Alumisource for US$22.5 million (A$29 million)
- Sims is expecting the purchase to increase its North American non-ferrous sales by 33,000 tonnes from 140,000 tonnes last financial year
- Alumisource’s founder and CEO Gabe Hudock will continue to manage the business for a minimum of three to five years
- On the market today, Sims is up 1.25 per cent and is trading at $12.57 per share
Sims (SGM) has purchased certain commercial and operating assets off leading North American aluminium processor Alumisource.
Sims purchased the assets for US$22.5 million (A$29 million) with further payments expected over the next three to five years.
The metals and electronics recycling company is expecting the purchase to increase its North American non-ferrous sales by 33,000 tonnes from 140,000 tonnes last financial year.
Sims CEO and Managing Director Alistair Field is pleased to achieve this key milestone.
“Major aluminium customers in the United States continue to seek product that is suitable for direct charging. Alumisource meets these needs by providing ‘inspec’ furnace ready product in an automated and safe manner,” he said.
“Alumisource is an ideal fit with our purpose, create a world without waste to preserve our planet, and our sustainability goals. One tonne of aluminium produced from recycled sources mitigates 7.9 tonnes1 of carbon emissions compared to aluminium produced from virgin material,” he added.
Additionally, Alumisource’s founder and CEO Gabe Hudock will continue to manage the business for a minimum of three to five years.
“Sims has a longstanding relationship with Alumisource, and I know the culture that Gabe has cultivated around safety and sustainability fits well with our overall culture and our focus on safety,” Alistair said.
“We are committed to a disciplined capital management approach and ensuring that new capital investments fit with our strategy and purpose, as well as meeting minimum hurdle requirements,” he concluded.
On the market today, Sims is up 1.25 per cent and is trading at $12.57 per share at 1:44pm AEDT.