Sims Limited has agreed to acquire the assets of Tri Coastal Trading (TCT) in Houston, Texas, for USD 66.5 mln as part of a strategy to consolidate its Houston operations and reduce operating costs, according to the company’s stock exchange filing.
The transaction will consolidate Sims’ ferrous operations onto the Tri-Coastal site in the Galena Park industrial area, replacing its existing service agreement with TCT’s Enstructure business. The addition of the harbourside land and docking facilities is expected to enhance Sims’ logistics capabilities for sourcing and shipping scrap metal by truck, rail, barge and bulk, both domestically and internationally. TCT ships more than 350,000 tons of processed scrap annually.
Sims said the acquisition is expected to generate significant operating and administrative cost savings and expand its logistics footprint in Houston, one of North America’s key scrap metal markets.
As part of the broader restructuring of its Houston portfolio, Sims also agreed to sell its Mayo Shell property, with the wider land divestment strategy expected to generate around USD 100 mln.
Sims’ chief executive Stephen Mikkelsen said the acquisition provides a solution to longstanding limitations in the company’s Houston operations, notably the lack of a deep-water dock at its existing site, and will improve cost efficiency, profitability and return on invested capital.
Sims Limited is a global metal recycling group founded in 1917 and headquartered in Australia. The company operates more than 200 facilities across 15 countries and specializes in the sourcing, processing and sale of ferrous and non-ferrous metals.
