Kentucky's Largest Scrap Recycler Announces Acquisition of Louisville Metal Recycler

SEATTLE (Scrap Monster): River Metals Recycling- Kentucky’s largest scrap recycler announced its decision to enter into an agreement to acquire substantially all of the assets of Louisville, Kentucky-based Industrial Services of America Inc. (ISA). The acquisition is for a sum of $23.3 million less certain payoff amounts. The transaction is expected to close in Q4 2019 or Q1 2020.

The acquisition comes days after reports that ISA was in danger of being delisted from the Nasdaq, following its failure to meet the minimum closing bid price requirement set forth in Nasdaq Rules. The SEC filing had noted that the closing bid price of ISA’s common stock never met this requirement for 30 consecutive business days from June 20th to Aug 5th.

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According to River Metals Recycling press release, it is expected to hire substantially all of the ISA’s employees, upon completion of the transaction. Meantime, Todd Phillips, CEO, ISA is unlikely to join the company, it said. Meantime, ISA, in its release, stated that the transaction has already been approved by company’s board of directors and is awaiting shareholders’ approval. The net proceeds from the sale will be distributed to shareholders after settlement of debt, transaction cost and other expenses, it added.

River Metals Recycling is a subsidiary of the Cincinnati-based David J. Joseph Co.

Founded in 1954, ISA is one of Louisville's smaller publicly traded companies.