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Metal Recycling News February 12, 2018 01:30:58 PM

Upstate Shredding Announces All Cash Bid to Acquire Leading Auto Recycler

Paul Ploumis
ScrapMonster Author
The offer will be funded with cash-on-hand and is not subject to any financing condition. The company has already engaged Olshan Frome Wolosky LLP as legal counsel to ensure expedition of the transaction in a smooth manner, Weitsman said.
Upstate Shredding Announces All Cash Bid to Acquire Leading Auto Recycler

SEATTLE (Scrap Monster): The US East Coast’s largest privately owned scrap metal processor, Upstate Shredding, LLC. Has submitted a non-binding offer to acquire Fenix Parts Inc., a Westchester, Illinois-based auto recycler with facilities across New York, New Jersey, Pennsylvania, Georgia, North Carolina, Florida and Ontario, Canada.

The proposal to this effect was made in a letter dated 9th February, sent by Adam Weitsman, CEO, Upstate Shredding to Kent Robertson, President and CEO, Fenix Parts. In the letter, Weitsman has expressed the company’s willingness to acquire all outstanding shares of Fenix Parts at a rate of 50 cents per share. The offered purchase price represents an attractive premium of nearly 46% to the current market price. Incidentally, the shares of Fenix Parts had closed at a price of 27 cents per share on 8th February, 2018.

According to Weitsman, the automotive recycling business run by Fenix Parts fits well with the company’s operations. He stated that the company is eager to work with Fenix on the proposal and hoped to commence communication at the earliest. The offer will be funded with cash-on-hand and is not subject to any financing condition. The company has already engaged Olshan Frome Wolosky LLP as legal counsel to ensure expedition of the transaction in a smooth manner, he said. Further, Weitsman urged the Fenix Board of Directors to arrange for a mutual discussion on the offer, at the earliest.

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The Owego, New York-headquartered operates from across 16 facilities spread across the northeast region. These facilities collectively process over 1 million tons of ferrous scrap and 200 million pounds of non-ferrous scrap every year. Founded in 1996, the company offers scrap metal processing and recycling services in the US. It processes various types of ferrous and non-ferrous scrap metals.

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