By Paul Ploumis 23 Jun 2015 Last updated at 06:55:57 GMT
SPOKANE (Scrap Monster): Total Merchant Ltd. has announced purchase of Metalico Inc.-a Cranford, NJ-based scrap recycling company. The board of directors of Metalico Inc. has ratified the purchase deal. According to sources, the purchase price is nearly $87 million.
According to the press release issued by Metalico Inc., the all-cash deal includes a payment of 60 cents to Metalico’s stockholders for each share of the company’s common stock they own as of the closing date. The price includes roughly $44 million for Metalico’s outstanding equity plus the cost of retiring the company’s primary term and institutional senior and convertible debt, estimated at approximately $45 million, and the assumption of approximately $16 million of additional debt as of June 15, 2015.
As per the terms of the agreement, Metalico Inc will be made a wholly owned subsidiary of Total Merchant, through merger of a subsidiary of Total Merchant with Metalico. The merger is subject to certain closing conditions, but no regulatory approvals are pending. The all-cash deal is expected to come to a close by third quarter of this year. The termination date mentioned in the agreement is Sep 21, 2015. However, Metalico expects the deal to be completed by August 31st. All the management staff and other personnel of Metalico will be retained.
Metalico and its subsidiaries operate ferrous and nonferrous recycling facilities, including platinum group metals (PGM) and minor metals recycling facilities. The company mainly operates in New York, Pennsylvania, Ohio, West Virginia, New Jersey and Mississippi.