Sims Metal Acquires Northeast Metal Traders

March 21, 2023

NEW YORKSims Metal, a global leader in metal recycling, today announced that the company will acquire the commercial and operating assets of Pennsylvania-based Northeast Metal Traders (NEMT). The acquisition is anticipated to close in mid-April 2023.

NEMT, a non-ferrous scrap metal wholesaler and broker, operates a single-scale site in Philadelphia and has extensive supplier and end-consumer relationships that stretch across the eastern United States. NEMT is one of the largest copper recyclers in the U.S. They process and sell approximately 60,000 tons of non-ferrous metal per year.

The transaction consideration implies an EV/EBITDA multiple of 4.8x on a pre-synergies basis (including estimated working capital).

The NEMT acquisition is in line with the company’s growth strategy, which includes the expansion of the non-ferrous business in North America (Sims Metal North America), and the allocation of growth capital expenditure toward assets that yield a minimum post-tax internal rate of return (IRR) of 15 percent.

“We are very excited about this bolt-on acquisition and the opportunities it opens up for the Sims Metal North America business,” said Alistair Field, managing director and chief executive officer of Sims Limited. “The Northeast brings commercial and operating synergies, as well as provides us with a significant and complementary footprint in Philadelphia.”

This acquisition will substantially increase the copper volumes in the metal business, as the Northeast focuses predominantly on high-quality copper granulation. Furthermore, with the demand for copper scrap growing rapidly, it will strengthen Sims Metal’s exposure to the energy transition and decarbonisation.

About Sims Limited

Founded in 1917, Sims Limited is a global leader in sustainability and a key enabler of the circular economy whose 4,400 employees operate from more than 200 facilities in 15 countries. As the parent company of Sims Metal, a global leader in metal recycling; Sims Lifecycle Services, a provider of circular solutions for technology; and Sims Resource Renewal, an emerging leader in renewable energy; our purpose, create a world without waste to preserve our planet, is what drives us to constantly innovate and offer new solutions in the circular economy for consumers, businesses, governments and communities around the world. The company’s ordinary shares are listed on the Australian Securities Exchange (ASX: SGM) and its American Depositary Shares are quoted on the Over-the-Counter market in the United States (USOTC: SMSMY). For more information on how the company is driving sustainable change, visit