- Sims Limited announces acquisition of Recycler Australia.
- Recycler Australia is a metal recycling company based in Brisbane.
- The acquisition aligns with the growth strategy of Sims Limited.
Metal recycling leader Sims Limited (ASX:SGM) shares gained as much as 3% on Tuesday as the Company announced acquisition of Brisbane based metal recycler – Recycler Australia.
About the Recycler Australia acquisition by Sims Limited
Sims paid AU$18 million for acquiring the Recyclers Australia and it includes getting the land at the Yatala facility and financial closure of the transaction took place on 6 December 2021. The acquisition price is calculated on the post synergy basis, that is, EBITDA multiple of 3.3x.
The recycling business of Recycler Australia is located in South-East Queensland and three facilities are situated in Melbourne, Brendale and Yatala (acquired by SGM).
The transaction complements the Company’s strategy to expand into the coastal markets that offer the opportunity of bulk export and add value to the top-tier processing facility. The Yatala facility highly complements the strategy of Sims as it is situated in the growth corridor with a population of 4 million. The comments on the acquisition by managing director and CEO of the company, Alistair Field highlights the same,
SGM shares closed 2.387% strong at AU$15.010 per share with the market capitalisation of AU$2.89 million.
It can be interpreted that Sims is highly confident about the exposure gained after the acquisition. Therefore, shares and the quarterly report of Sims will be on the radar of the investors.