Horsehead to Acquire INMETCO
12/03/2009 - Horsehead Holding Corp. plans to acquire The International Metals Reclamation Co. (INMETCO). The acquisition is expected to close on December 31.
Horsehead Holding Corp. plans to acquire The International Metals Reclamation Company (INMETCO). The acquisition is expected to close on December 31.
Horsehead expects the move to enhance its hazardous waste services platform and diversify its range of capabilities and products, including the recycling of electric arc furnace dust and stainless steel flue dust for the recovery and reuse of a range of valuable metals.
"The acquisition of INMETCO expands Horsehead's industrial metals portfolio while leveraging our key strengths in hazardous waste management and high-temperature metals recovery," said Jim Hensler, Chairman, President and CEO of Horsehead.
Under the terms of the Stock Purchase Agreement, Horsehead is expected to pay a purchase price of $34.0 million in cash, subject to adjustment, and the assumption of certain financial assurance obligations associated with environmental regulatory requirements that are currently in the form of a $8.55 million letter of credit.
Stifel, Nicolaus & Co., Inc. acted as Horsehead's exclusive financial advisor for this transaction.
Horsehead Holding Corp. is a leading U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust, a hazardous waste produced by the carbon steel mini-mill manufacturing process. Headquartered in Pittsburgh, Pa., Horsehead employs over 800 people and has seven locations throughout the U.S.
INMETCO is a leading U.S. recycler of hazardous and non-hazardous waste for the specialty steel industry. It is also a significant processor of other metal-bearing wastes, including industrial and consumer batteries. INMETCO is based in Ellwood City, Pa., and employs 108 people. It is an indirect, wholly owned subsidiary of Vale Inco Ltd., a leading producer of nickel, copper, and cobalt, based in Toronto, Ont. In 2008, INMETCO generated earnings before interest, taxes, depreciation, and amortization of $12.8 million on revenue of $61.1 million on total remelt alloy shipments of approximately 27,000 tons.
