Global metals recycler Sims has agreed the sale of its UK metal business to Unimetals Group for £195mn ($248.8mn), the company announced in an ASX filing.
The sale consists of all 28 UK sites, including three port facilities and four shredders, all of which had an intake volume of around 1.3mn t of ferrous and non-ferrous scrap and sales volumes of 1.4mn t in the financial year ending 30 June 2023.
The transaction is expected to be completed by the end of the first quarter of 2025 and comes after Sims carried out an internal review following interest from potential buyers in November.
The move allows the company to strengthen its balance sheets and focus on high-potential markets, such as the US, Australia and New Zealand, where "business position and demand for scrap are stronger", Sims chief executive and managing director Stephen Mikkelsen said.
Following the sale of its UK arm, which represented about 14pc of overall sales in the 2024 financial year, the group's metal portfolio will include Australia and New Zealand Metal, North America Metal and its 50pc share in SA Recycling.
Unimetals was founded in 2022 and was initially created to acquire metals recycling and processing assets, it said in a Companies House filing. But the firm decided to develop its own assets and started trading in 2023, until a suitable acquisition opportunity arose.
Unimetals operates an export facility on the river Couch in Essex, southeast England, where it can ship scrap in bulk and containers. It also owns a subsidiary in the UAE, where it operates low-grade precious metal recovery and processing facilities.
In the 18 months to 31 December 2023, Unimetals reported in a filing revenue of just under $16mn.
Sims has also signed a letter of intent to sell its remaining 12.4pc stake in US-based recycler Circular Services for $32mn.
While recognising a loss at this sales level, Sims said it — along with previous divestments beginning in January 2022 — has sold its entire investment for 126m Australian dollars ($83mn), a gain of A$56mn.
Circular Services is a large, privately owned recycling firm, operating more than 20 facilities across the US.
