Nov 2 2005
Schnitzer Steel Industries, Inc. today announced it has acquired substantially all the assets and certain liabilities of Regional Recycling, LLC ("Regional"), a metals recycling business with 10 locations in the Southeastern United States.
"Our acquisition of Regional provides us with a new and solid presence in the Southeast, and complements our metals recycling businesses and our recent acquisition of Greenleaf Auto Recyclers. With the acquisition of Regional, Schnitzer's ability to serve domestic and export markets from either coast is significantly enhanced," stated John D. Carter, Schnitzer Steel's President and Chief Executive Officer. "These are well-run operations that we believe will be smoothly integrated them into our existing businesses. We anticipate the Regional acquisition will be immediate accretive to earnings."
Carter continued, "We look forward to working with Regional's employees and talented management team, including Byron Kopman and David Romanoff. Byron and David will both hold positions as Executive Directors of Schnitzer Southeast. We have been very impressed by their success, and believe their experience and knowledge will help us continue to grow throughout the Southeastern U.S."
Mr. Kopman commented, "David, I and the entire Regional team are very pleased that our business has been acquired by a well recognized and established leader, like Schnitzer Steel, in the scrap business." Prior to this acquisition, Schnitzer Steel's metals recycling business consisted of 19 operations in 10 states, none in the Southeast. Mr. Romanoff added, "We like the prospects for growth in this region, and being part of the Schnitzer organization provides us the opportunity to be a part of it." The newly acquired assets will be operated under the name of Regional Recycling, a Schnitzer Company, with locations in Alabama (Attalla, Birmingham and Selma) and Georgia (Atlanta (3), Bainbridge, Cartersville, Gainesville and Rossville).
In calendar 2004, Regional reported revenues of $190.4 million and significant operating profit. Further, they sold 500,000 tons of ferrous metal and nearly 100 million pounds of non-ferrous metal. For more information on Regional Recycling, visit www.regionalrecycling.com.
The total consideration paid to Regional for these operations was $65.5 million in cash and the assumption of certain liabilities.