“This acquisition is a highly complementary fit with our strategy to expand the metal-recycling business in North America,” said Alistair Field, chief executive officer and managing director of Sims.
Sims is the parent company of Sims Metals, the operator of the recycling business.
The company will fund the acquisition through the sale of assets it considers to be non-core and others that “are not likely to achieve their required rate of return,” said Stephen Mikkelson, chief financial officer of Sims.
The deal is expected to be finalized in October.
Sims Metal recycles nearly 10 million tons of metal annually. The company purchases both ferrous metals, like iron and steel, and non-ferrous metals.