Sims Limited has announced a binding agreement to sell its UK metal business to Unimetals Group Limited for approximately USD 249 mln in after-tax cash proceeds, including retained working capital. The final amount will be subject to a completion mechanism based on net asset value.
This deal concludes the strategic review initiated on November 22, 2023. The transaction is subject to customary conditions, including regulatory approvals, and is expected to be finalized by the end of Q1 FY25.
The sale, which includes 28 facilities (three of which are port facilities) and four shredders, reflects a significant premium over the net carrying value of the assets. Unimetals will take on the responsibility for the employees currently working in the UK metal business. The UK metal business accounted for about 14pct of Sims Metal’s total sales volumes in FY24.
Following the sale, Sims will focus on its metal operations in Australia and New Zealand, North America, and its 50pct stake in the SA Recycling Joint Venture.
Additionally, Sims announced it has signed a letter of intent to sell its remaining stake in US-based CLP Circular Services Holdings LLC for approximately USD 32 mln, pending customary due diligence expected to complete in Q1 FY25.
Sims CEO and Managing Director Stephen Mikkelsen commented that concentrating on high-potential markets in the US, Australia, and New Zealand will enable the company to leverage its strengths and drive sustainable growth.
Founded in Australia in 1917, Sims Limited is a global leader in metal recycling and circular solutions for technology, operating over 160 facilities in 13 countries.
