Metalico Inc. Completed Acquisition of Assets of Auto Shredder Yard
Metal Recycling News | 2020-12-31 13:27:35
The purchase transaction, valued at $13.2 million, was completed on the Christmas Day.
By Paul Ploumis
SEATTLE (Scrap Monster): New Jersey-headquartered Metalico Inc. announced that it has acquired the assets of an auto shredder yard in Ohio from Liberty Iron & Metal-a subsidiary of Hong Kong-based Chiho Environmental Group. The purchase transaction, valued at $13.2 million, was completed on the Christmas Day. The deal covers shredder yard in Girard, near Youngstown in Northeast Ohio.
According to filing by Chiho on the Hong Kong Stock Exchange, the seller is described as an indirectly wholly owned subsidiary of it. The buyers are mentioned as Chloe Girard LLC and Metalico Youngstown Inc.- both being part of Shanghai Stock Exchange-listed Ye Chiu Metal Recycling (China) Ltd.
Chiho will use the proceeds from the sale towards repaying existing local bank loans secured over the sold assets. This in turn will help the company to cut its loan liabilities and meet other financial expenses. The sale is part of the company’s strategic plan to refocus on its Southwest U.S. operations, after thorough review of its geographical footprint.
Earlier during the month, Scholz Recycling GmbH & Co. KG- an indirect wholly owned subsidiary of Chiho Environmental Group had announced opening of a new yard with most modern operational capabilities in Fredericia, Denmark.
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