Heat Treat Industry News

December 07, 2009

Horsehead Holding to acquire International Metals Reclamation Company

Dec 03, 2009 - Horsehead Holding Corp. is planning to acquire The International Metals Reclamation Company, Inc. (INMETCO), a recycler of metals-bearing wastes in North America. Horsehead is a producer of specialty zinc and zinc-based products and a recycler of electric arc furnace dust. INMETCO is an indirect, wholly-owned subsidiary of Vale Inco Limited, a producer of nickel, copper and cobalt. Both Horsehead and INMETCO are based in the US.

Under the terms of the agreement, Horsehead is expected to pay a purchase price of $34 million in cash 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.

In 2008, INMETCO generated earnings before interest, taxes, depreciation, and amortization of $12.8 million on revenue of $61.1 million.

Stifel, Nicolaus & Company, Incorporated is acting as exclusive financial advisor to Horsehead, while RBC Capital Markets is acting as financial advisor to Vale Inco on this transaction.

The transaction is expected to close on December 31, 2009.

Deal Value (US$ Million) 42.55
Deal Type Acquisition
Sub-Category Majority Acquisition
Deal Status Announced: 2009-12-02

Deal Participants

Target (Company) The International Metals Reclamation Company, Inc.
Acquirer (Company) Horsehead Holding Corp.

Deal Rationale

The combination of Horsehead and INMETCO will enhance Horsehead's hazardous waste services platform and diversify its range of capabilities and products.

SOURCE: TRADINGMARKETS.COM

For more information on our services, please contact us via e-mail

Robert Gutierrez - RGutierrez@HoustonHeatTreat.com
Mark Tate - Sales or Technical assistance - MTate@HoustonHeattreat.com

or call us at 281-590-9600.