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|Metalico Acquires Youngstown Operations|
|CRANFORD, NJ, Dec 16, 2009 (MARKETWIRE via COMTEX) -- Metalico, Inc. (NYSE Amex: MEA) announced today that it has
completed the purchase of the operating assets of Youngstown Iron &
Metal ("YIM") and Atlas Recycling ("Atlas") located principally in
The acquisition includes all inventory and equipment and will include all real estate owned by affiliates of the sellers and used in their businesses. The purchase price was not disclosed.
Acquired assets include a Newell 80-104 auto shredder located directly adjacent to YIM's key consumer, V&M Star, a leading producer of seamless Oil Country Tubular Goods.
The shredder is supported by three other nearby locations, including a ferrous and non-ferrous feeder buying yard in Warren, Ohio, and related transportation and maintenance facilities.
YIM, over the last two years, averaged $50 million of annual revenue and sold an annual average of 105,000 gross tons of scrap steel and approximately 15 million pounds of non-ferrous products. The YIM operations complement Metalico's Akron, Ohio scrap operations only 50 miles west of Youngstown. Metalico's Pittsburgh regional scrap operations are headquartered only 70 miles east of the new facilities. YIM will draw on Metalico's extensive network of scrap suppliers and its capital resources to greatly increase operating capacity and utilization at the shredder and elsewhere in the operations.
YIM's contribution to Metalico's results is expected to be accretive to earnings immediately.
Commenting on the acquisition, Metalico President and Chief Executive Officer Carlos E. Agueero said, "The Youngstown purchase is consistent with Metalico's expansion strategy of penetrating geographically contiguous markets and extracting the operating synergies that surface in consolidation."
He added, "As a result of the weak economy and the tight credit conditions today for smaller, family owned companies, we are finding realistically valued acquisition opportunities in markets we target for expansion."
Metalico, Inc. is a holding company with operations in two principal business segments: ferrous and non-ferrous scrap metal recycling, and fabrication of lead-based products. The Company operates twenty-one recycling facilities in New York, Pennsylvania, Ohio, West Virginia, New Jersey, Texas, and Mississippi and four lead fabricating plants in Alabama, Illinois, and California. Metalico's common stock is traded on NYSE Amex under the symbol MEA.
Contact: Metalico, Inc. Carlos E. Agüero Michael J. Drury Email Contact 186 North Avenue East Cranford, NJ 07016 (908) 497-9610 FAX: (908) 497-1097 www.metalico.com
SOURCE: Metalico, Inc.
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