Sims Metal (SMS) Sells Arizona Scrap Business for $35M
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Sims Metal Management Limited (NYSE: SMS), the world’s largest listed metal and electronic recycling company, today announced the sale, effective 30 November 2012, of its Arizona scrap metal recycling assets to SA Recycling LLC (SAR). SAR is a joint venture owned equally by SimsMM and Adams Steel, and has operations in California, Nevada and Arizona.
The sale was settled at a price of US$35 million in cash. The sale principally involves the real property related assets for two scrap metal recycling facilities located in Phoenix and Tucson, Arizona. SimsMM will retain the working capital assets of the Arizona business which is anticipated to monetize a further circa US$15 million in cash over 45 days following the sale. This brings the total expected cash generation from the Arizona sale to US$50 million. The transaction will be accounted for in the first half Fiscal 2013 results with an expected pre-tax loss of A$12 million. The loss on sale relates to the value of intangible assets not realised in the sale.
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The sale was settled at a price of US$35 million in cash. The sale principally involves the real property related assets for two scrap metal recycling facilities located in Phoenix and Tucson, Arizona. SimsMM will retain the working capital assets of the Arizona business which is anticipated to monetize a further circa US$15 million in cash over 45 days following the sale. This brings the total expected cash generation from the Arizona sale to US$50 million. The transaction will be accounted for in the first half Fiscal 2013 results with an expected pre-tax loss of A$12 million. The loss on sale relates to the value of intangible assets not realised in the sale.
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