Metal recycling company Sims (ASX:SGM)
has acquired the assets of Brisbane based metal recycler, Recyclers Australia for $18 million.
The acquisition reached financial close yesterday and includes title of land at the primary Yatala facility. The transaction implies an EV/EBITDA multiple of 3.3x on a post-synergies basis.
Sims outlines that the transaction is consistent with the company’s strategy to grow in large coastal markets which offer the potential for top tier processing facilities and bulk export optionality.
“This acquisition is aligned with the group’s core metal growth strategy and its core-competitive advantage in coastal markets with bulk ferrous shipping optionality," said CEO and managing director Alistair Field.
Shares in Sims (ASX:SGM)
are trading 2.5 per cent higher at $15.02.