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CommentsSims Metal Management Ltd. has sold its Arizona scrap metal recycling assets to SA Recycling LLC for $35 million in cash, effective Nov. 30, according to a news release
SA Recycling is a joint venture owned by Sims and Anaheim, Calif.-based Adams Steel LLC. The JV has operations in California, Nevada and Arizona.
The sale involves the real property related assets for two scrap metal recycling facilities in Phoenix and Tucson. Chicago-based Sims will retain the working capital assets of the Arizona business, which represents $15 million and brings the total expected cash generation of the sale to $50 million.
Under the deal, Sims will retain the profit and cash flow of the Arizona business through its 50% ownership in SA Recycling. The sale also resolves issues related to Sims' SA Recycling joint venture agreement, which allowed the company to operate, but not to expand, in Arizona.
"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," Daniel W. Dienst, group CEO of Sims Metal Management, said in a release.
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