Schnitzer Steel Industries Acquires Puerto Rico Metals Recycleradmin
Schnitzer Steel Industries, Inc. announced that it has signed a definitive agreement to acquire Ponce Resources of Salinas, Puerto Rico. Ponce is engaged in the business of collecting, processing, and selling ferrous and nonferrous scrap metal and operates at four locations in the Commonwealth of Puerto Rico. The acquisition is expected to close during Schnitzer’s fiscal first quarter of 2009.
Commenting on the agreement, John Carter, President and CEO of Schnitzer said, “We are pleased to be able to acquire these facilities, which will allow us to enter the Puerto Rico recycling market with the premier operator in the Commonwealth. The government and people of Puerto Rico have demonstrated a commitment to metals recycling, and we look forward to working together to further expand these activities.”
“Ponce Resources has a long history of strong supplier and customer relationships,” said Johannes Schoo and Tjerk Spijkerman, who along with Lennox Garden Investments are the sellers of the business. “This enables us to join forces with a company that has a 100-year history in the metals recycling business and is one of the largest metals recyclers in the world.”
Carter added, “This acquisition demonstrates our continued confidence in the positive long-term fundamentals supporting our Metals Recycling Business and the general public’s desire for and support of environmentally sustainable business activities, and is consistent with our strategic objective of acquiring companies with an established presence in their local markets, access to water-based transportation and an experienced management team. We will continue to seek opportunities to expand our metals recycling footprint, both in existing markets and in new areas that meet these strategic objectives.”
Terms of the transaction were not announced.
Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled ferrous metal products in the United States with 39 operating facilities located in 12 states throughout the country, including six export facilities located on both the East and West Coasts and in Hawaii. The Company’s vertically integrated operating platform also includes its auto parts and steel manufacturing businesses. The Company’s auto parts business sells used auto parts through its 38 self-service facilities and 18 full-service facilities located in 16 states and in western Canada. With an annual production capacity of approximately 800,000 tons, the Company’s steel manufacturing business produces finished steel products, including rebar, wire rod and other specialty products. The Company commenced its 103rd year of operations in fiscal 2009.