Sergio and All:
Recycling Industries Signs Letter of Intent to Acquire Mindis Metals, Inc.
ENGLEWOOD, Colo., Nov. 12 /PRNewswire/ -- Recycling Industries, Inc.,
(Nasdaq: RECY - news), a company engaged
in the roll-up of metals recycling companies and raw materials supplier to the mini-mill
sector of the steel industry, announced
today that it has signed a letter of intent to purchase the assets of Mindis Metals, Inc.,
headquartered in Atlanta, Georgia.
Mindis Metals is one of the largest scrap metal recyclers in the Southeast,
with operations in four states, processing and
brokering over 800,000 tons of ferrous metal per year and over 100 million
pounds of non-ferrous metals per year. Mindis
Metals has annualized revenues of approximately $170 million. This closing
will bring the annual revenue run rate of Recycling
Industries to approximately $455 million once all announced acquisitions close.
The Mindis acquisition is expected to close
during the first calendar quarter of 1998.
Mindis Metals has 16 processing facilities located throughout Georgia, Alabama, South
Carolina, and Florida. Mindis Metals
operates a 4000-horsepower auto shredder, four 1000-ton shears, four ferrous baling
presses, a 10,000-pound per hour wire
chopping facility, and a 1500-horsepower aluminum shredder, plus other ferrous and
non-ferrous processing equipment.
The Company operates as a hub-and-spoke feeder system with a fleet of more than
100 trucks, 50 company-owned railcars,
and over 1500 trailers and containers servicing the industrial sector of their business.
This system provides for the procurement
and processing of all types of ferrous and non- ferrous scrap. Mindis Metals purchases
scrap from over 3,000 suppliers,
including manufacturing and industrial plants, metal fabricators, secondary metal
collections firms, and a host of other
miscellaneous sources. In addition, the Company also has a ferrous brokerage division
located in Jacksonville, Florida.
Tom Wiens, Chairman and CEO of Recycling Industries, said, ''The acquisition of
Mindis Metals makes sense for Recycling
Industries, particularly in light of our recent announcement of our intent to buy Central
Metals Company of Atlanta. Mindis
Metals and Central Metals will be joining forces to create one of the most exciting
opportunities in the metals recycling
business. These companies will provide the basis of expanded market penetration in
the Southeastern United States. The
clustering of companies created by Recycling Industries' announced acquisitions of
Jacobson Metal Company, Brenner
Companies, United Metal Recyclers, Central Metals, and now Mindis Metals will
assemble an opportunity for significant
market penetration in the region and additional shareholder value. This coalition will
benefit Recycling Industries through
economies of scale, regional buying power, end product upgrading, and value added
production. We look forward to having
Mindis Metals as part of Recycling Industries.''
Mindis Metals CEO Byron Kopman said, ''This acquisition is a good fit for Mindis
Metals and Recycling Industries. It
provides for additional significant geographic reach and market penetration for
Recycling Industries in the southeastern part of
the United States. This acquisition, combined with Recycling Industries' existing and
announced acquisitions in this region, will
provide for additional efficiencies and other opportunities as we join Recycling
Industries facilities in the southeast.''
The closing of the transaction is subject to, among other things, execution of mutually
acceptable definitive agreements,
successful completion of due diligence, completion of certain additional documents,
obtaining corporate approvals, and other
customary pre-closing conditions.
Recycling Industries, Inc. is a rapidly growing consolidator of metals recycling
companies, providing quality, value-added
products and services to its customers. Recycling Industries is actively pursuing the
acquisition, integration, and growth of
metals recycling companies. Based in Englewood, Colorado, Recycling Industries
owns and operates metals recycling
companies in Georgetown, SC; Metter, GA; Warrenton, GA; Waterloo, IA; St.
Genevieve, MO; Las Vegas, NV; and
Brownsville, Harlingen, and San Juan, TX.
The Statements included in this press release announcing the Letter of Intent to acquire
Mindis Metals Company, Inc.,
concerning predictions of economic performance and management's plans and
objectives constitute forward- looking
statements made pursuant to the safe harbor provision of the Private Securities
Litigation Reform Act of 1995. These
statements involve risks and uncertainties that could cause actual results to differ
materially from the forward-looking
statements. Factors which would cause or contribute to such differences include but
are not limited to factors detailed in the
Company's Securities and Exchange Commission filing; downturns in the company's
primary markets; disruptions to the
company's operations from acts of God or extended maintenances, and transportation
difficulties.
...............................
The key word above is BROKERAGE... Brokerage costs are about 5-7% of
RECY's bottom line... This means that RECY will be doing more self Brokering...
More money will flow to the bottom line...
Jim |
