Headline: Recycling Industries Closes Six Acquisitions
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ENGLEWOOD, Colo., Dec. 9 /PRNewswire/ -- Recycling Industries, Inc.,
(NASDAQ:RECY), a company engaged in the acquisition and consolidation of
metals recycling companies and a major national raw materials supplier to the
mini-mill sector of the steel industry, announced today that it has completed
the acquisitions of Jacobson Metal Company, letter of intent (LOI) announced
September 3, 1997; Grossman Brothers Company and Milwaukee Briquetting
Company, LOI announced September 12, 1997; United Metal Recyclers, LOI
announced October 9, 1997; Brenner Companies, LOI announced October 13, 1997;
William Lans Sons Company, LOI announced November 3, 1997; and Central Metals
Company, LOI announced November 4, 1997.
Recycling Industries, Inc., disclosed the aggregate purchase price for
these six businesses was $151 million which included approximately $37 million
in working capital. The aggregate purchase price was a combination of $115
million in cash, $2.8 million in assumed liabilities, $4.0 million in assumed
deferred payments, $19.2 million in convertible preferred equity and $10.0
million in common stock. These six companies have estimated annual revenues
of approximately $195 million bringing the annual revenue run rate of
Recycling Industries to approximately $285 million. The combined earnings
before interest, taxes, depreciation, and amortization (EBITDA) of these six
acquisitions is approximately $25 million based upon estimated 1997 fiscal
year results.
These acquisitions were financed with a portion of the $220 million of
financing the Company announced on December 8, 1997. Proceeds were also used
to repay existing indebtedness of $35.3 million. Additional proceeds are
available for future acquisitions and general corporate purposes. This
financing was syndicated by G E Capital Merchant Banking Group and BankBoston,
N.A. which provided a $150 million senior credit facility to the Company of
which $57 million remains unused. Subordinated debt of $60 million was placed
with a group of investors led by SunAmerica. The Company also placed $10
million of common equity. Imperial Capital, LLC acted as Investment Banker
for Recycling Industries, Inc. in connection with this $220 million financing.
Tom Wiens, Chairman and CEO of Recycling Industries, said, "We are pleased
to welcome this distinguished group of metals recycling companies into the
Recycling Industries' family. All of these companies are premier operations
and are expected to be accretive to earnings. The closing of these six
transactions represents an important step in the execution of our long-term
industry consolidation program. This also demonstrates that our excellent
senior management team has the ability to identify, evaluate, structure, and
close acquisition transactions that will be both top and bottom line
contributors. We believe this reaffirms Recycling Industries position as one
of the top leaders in our industry."
Recycling Industries, Inc., headquartered in Englewood, Colorado, is a
rapidly growing geographical 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.
The Statements included in this press release 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
maintenance; and transportation difficulties.
SOURCE Recycling Industries, Inc.
-0- 12/09/97
/CONTACT: Thomas J. Wiens, Chairman and CEO, or Alexander V. Lagerborg,
Director of Investor Relations, both of Recycling Industries, Inc.,
800-830-1011 or 303-790-7372, www.recy.com; or Retail: Jim Estrada, Joe
Dorame, or Sandy Sommer, or Analysts/Institutional: Joe Diaz or Max Ramras,
all of RCG Capital Markets Group, Inc., 602-675-0400, www.rcgonline.com/
/Web site: www.recy.com/ |
