Recycling Industries Signs Letter of Intent to Acquire Mindis Metals, Inc.
ENGLEWOOD, Colo., Nov. 12 /PRNewswire/ -- Recycling Industries, Inc.,
(Nasdaq: RECY), 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.
SOURCE Recycling Industries, Inc.
CO: Recycling Industries, Inc.
ST: Colorado
IN: ENV MNG
SU: TNM |
