Youngstown operations acquired

Metalico, Inc. announced that it has completed the purchase of the operating assets of Youngstown Iron & Metal (YIM) and Atlas Recycling located principally in Youngstown, Ohio.

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.

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. 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.