Sims Limited has agreed to sell its UK Metals business to Unimetals Group Limited for total after-tax cash proceeds of approximately £195 million (approximately $385 million), including the value of retained working capital. The transaction is expected to close before the end of the first quarter of FY25. Unimetals Group Limited will gain access to 28 facilities, including three port facilities and four shredders.
The company's Metal portfolio will include Australia and New Zealand Metal, North America Metal and a 50% stake in SA Recycling Joint Venture. Sims also announced that it has signed a letter of intent to sell its remaining interest in CLP Circular Services Holdings LLC for approximately $32 million (approximately$50 million). Sims Municipal Recycling of New York was originally valued at $70 million on Sims' balance sheet.
Sims CEO and Managing Director Stephen Mikkelsen said that the sale provides an optimal outcome for Sims and its shareholders. By focusing on high potential markets such as the United States, Australia and New Zealand, where the business position and demand for scrap is stronger, Sims can effectively leverage its strengths and deliver sustainable growth.
Unimetals will generate approximately $435 million in after-tax cash proceeds between the two sales announced today. The proceeds will initially be used to strengthen the company's balance sheet and grow the refocused business with the requirement for balance sheet strength and flexibility and to deliver returns to shareholders over the medium term.
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