Scrap giant Sims has agreed to sell its UK Metal business to London-based recycler Unimetals Group for £195 million.
The deal, which remains subject to certain regulatory approvals and a price mechanism related to net asset value, is expected to complete before the end of next March.
It includes 28 facilities, three of them at ports, along with four shredders and all existing staff within the division.
The UK Metal business represented about 14 per cent of Warwickshire-based Sims Metal’s total income in its most recent financial year.
Meanwhile Sims announced that it had signed a letter of intent to sell its remaining interest in US recycling infrastructure developer Circular Services for about US$32 million (£25m).
Sims chief executive Stephen Mikkelsen said: “We conducted a comprehensive strategic review of UK Metal, evaluating all options, including a sale, forming a joint venture or restructuring the business. The board concluded that a sale provided the optimal outcome for Sims and its shareholders.
“By focusing on high-potential markets such as the US, Australia and New Zealand, where our business position and demand for scrap are stronger, we can effectively leverage our strengths and drive sustainable growth.”
He added: “We are pleased to have secured this transaction with Unimetals and the potential sale of our interest in Circular Services. This brings to a conclusion a program of divestment that commenced in 2022.”
