Recycling Industries Signs Letter of Intent to Acquire William Lans Sons Company
November 3, 1997 07:31 AM
ENGLEWOOD, Colo., Nov. 3 /PRNewswire/ -- Recycling Industries, Inc., RECY ,
a company engaged in the roll up of metal recycling companies and raw materials
supplier to the mini-mill sector of the steel industry, announced that it has signed a letter
of intent to purchase the assets of William Lans Sons Company in South Beloit, IL.
William Lans Sons Company has annual revenues of approximately $30 million dollars
and has a successful record of business operations for over 50 years. This acquisition
will bring the annual revenue run rate of Recycling Industries to approximately $245
million.
This acquisition will expand Recycling Industries' presence in the upper Midwest region
of the United States and provides synergy for the company with its other facilities in the
region and is expected to be immediately accretive to the Company's earnings. The
purchase of the William Lans Sons Company will be Recycling Industries' 15th facility
acquisition since May 1994.
Tom Wiens, Chairman and CEO of Recycling Industries stated, "We are very pleased
to be associated with a fine organization like William Lans Sons Company. William
Lans Sons Company has an excellent management team. Bert Lans, whose grandfather
was the founder of the company, has successfully led the company into a fourth
generation of profitable operations. Day-to-day operation of the plant will continue to
be led by the Lans. Bert, Bruce, and Scott bring very unique expertise to the scrap
industry. Not only have they grown up in the business, Bruce, 42, is a graduate of the
University of Wisconsin Law School, and Scott, 44, has an MBA from the University
of Wisconsin and was an associate partner for Andersen Consulting prior to rejoining
the family business. Bert, Bruce, and Scott Lans will all remain with Recycling
Industries, Inc. and will enter into multi-year employment contracts. The unique
expertise of this management team will not only help ensure the continued success of
William Lans Sons Company as part of the Recycling Industries family, but this
management team will also be able to help us expand our business by being an integral
part of our acquisition and expansion programs."
Bert Lans said, "I believe that Recycling Industries, Inc. has the right strategy to
emerge as the significant player in the consolidation of the metals recycling business.
Their management style and ours are all excellent fit and we believe that this team will
be a winner. We are very excited to be part of the Recycling Industries, Inc. team."
William Lans Sons Company is a full service facility located on a 26 acre site, with
140,000 square feet under roof. The facility includes a Hammermill auto shredder with
a Steinert Eddy Current separator, guillotine shears, balers and equipment for
non-ferrous processing. Materials processed at William Lans include automotive scrap,
industrial, demolition and non-ferrous scrap metals.
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
financing 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 metal recycling companies in Georgetown, SC; Metter, GA;
Warrenton, GA; Waterloo, IA; St. Genevieve, MO; Brownsville, Harlingen, San Juan,
TX and Las Vegas, NV. The Company has also recently announced its intent to
purchase Grossman Brothers in Milwaukee, WI; Jacobson Metal Company in
Norfolk, VA; United Metal Recyclers in Kernersville, NC; and Brenner Iron and
Metal in Winston-Salem, NC.
The Statements included in this press release announcing the Leter of Intent of Willian
Lans Sons company concerning predictions of economic performance and
management's plans and objectives constitute forward-looking statements are 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-loking 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 maintenance; and transportation difficulties. SOURCE Recycling Industries,
Inc.
Jim |
