Scrap & Recycling
Global recycling group Sims Metal Management has agreed to sell its European compliance scheme-oriented recycling operations to Germany-based TSR Recycling, it said today.
The €83.5mn ($91.9mn) deal is subject to competition approval by the European Commission. It includes the sale of Sims' waste electrical and electronic equipment (WEEE) treatment facilities in Sweden, Norway, Belgium and the Netherlands.
The companies included in the sale are Netherlands-based based Mirec, Sims Recycling Solutions Austrian Holdings, Germany-based Sims M + R, Sims Recycling Solutions Austrian Intermediate Holdings and Austria-based Sims Metrade.
Sweden-based Sims Recycling Solutions, Norway-based Sims Recycling Solutions and Netherlands-based Sims Recycling Solutions are also included in the deal.
But the sale does not include any sites that are a part of Sims' global e-recycling IT asset disposal business.
The deal is expected to have an impact on Sims' 2019 earnings. Earnings before interest and taxes, which have been estimated as if the sale was completed on 30 June, will be $26mn higher because of the deal.
Sims said the UK's planned exit from the EU was not a factor in the deal, adding that the sell-off is in line with its multi-year strategic growth plan. The European operations are "not core to us executing our strategy of being the leader in recycling the cloud", Sims chief executive and managing director Alistair Field said.
The proceeds from the sale will be used to strengthen the group's balance sheet, Field added.