Investor Group Purchases Loss-making E-Scrap Recycling Business for $300K

SEATTLE (Scrap Monster): Assets of troubled Metech Recycling has been acquired by an investor group associated with First America Metal Corp.

All of the stocks of Metech Recycling were purchased by the First America Management Group for a sum of $300,000. The final purchase agreement was signed between both the parties on Feb 19^th. Earlier in end-2018, Metech had confirmed that it received its first Stock Purchase Agreement (SPA) from First America Metal Corporation, which was later revised.

The proposed sale will result in deconsolidation of Metech’s operations in the U.S. Incidentally, the Group has five e-waste recycling facilities within the U.S located at Clinton, Mass.; Creedmoor, N.C.; Denver; Gilroy, Calif.; and Salt Lake City.

In late September 2018, the Singapore-headquartered Metech International announced that it intends to transfer the ownership of its e-scrap operations to two of its employees- Andrew and Simon Eng, Metech International’s CEO and chairman, respectively, for a sum of 75 cents. The business was estimated to be valued at $0 at that time. However, before the deal was finalized, First America Metal signed a letter of intent to purchase the U.S. operations. Simultaneously, Metech Malaysian e-scrap subsidiary was sold for a sum of around $33,000.

From a geographic viewpoint, the alliance between Metech and First America Group will result in expansion of nationwide service footprint of both the companies. It will help them to compete for contracts. Further to hints of further investment in the company by the First America Group, Metech Recycling has already started hiring back former employees.