Horsehead Holding acquires INMETCO

Horsehead Holding Corp. (Horsehead), the parent company of Horsehead Corporation, a producer of specialty zinc and zinc-based products and recycler of electric arc furnace (EAF) dust, a listed hazardous waste, announced its plans to acquire International Metals Reclamation Company (INMETCO), a recycler of metals-bearing wastes in North America.

Based in Ellwood City, Pennsylvania, INMETCO employs 108 people and operates the only secondary smelter in North America dedicated to recycling nickel, chromium and other metals from hazardous and non-hazardous wastes generated mostly by stainless steel and specialty metals producers.

INMETCO is also a leading processer of nickel-cadmium (NiCd) batteries, and its process has been recognized by the EPA as the Best Demonstrated Available Technology for the recycling of NiCd batteries. In 2008, INMETCO generated earnings before interest, taxes, depreciation, and amortization of $12.8 million on revenue of $61.1 million on total remelt alloy shipments of approximately 27,000 tons.

The combination of Horsehead and INMETCO will enhance Horsehead’s hazardous waste services platform and diversify its range of capabilities and products including the recycling of electric arc furnace dust and stainless steel flue dust for the recovery and reuse of a wide range of valuable metals.

Under the terms of the Stock Purchase Agreement, Horsehead is expected to pay a purchase price of $34 million in cash, subject to adjustment, and the assumption of certain financial assurance obligations associated with environmental regulatory requirements that are currently in the form of a $8.55 million letter of credit.