Metals recycling giant Sims Metal Management has today (May 9) announced the acquisition of one of its leading UK rivals Dunn Brothers, in a move that significantly increases its foothold in the West Midlands.
Dunn Brothers operates nine facilities across the UK, including a 6,000 horsepower shredder, non-ferrous recovery systems and dock facilities. Its key shredding and non-ferrous recycling assets are located in the Birmingham area and in total the company processes around 35,000 tonnes of scrap metal a month.
Dunn, which claims to be one of the UKs top five metal recyclers, also has a collection and export infrastructure extending between Southampton in the South, Ipswich in the East, Liverpool in the North West, Avonmouth in the South West and Barry in Wales.
The location of the companys shredder, at one of its three sites in Smethwick, Birmingham, was highlighted as being particularly significant for Sims by by Daniel W Dienst, Sims Metal Managements group chief executive officer.
He said: The acquisition of Dunn is a testament to our ability to find accretive and franchise enhancing acquisitions. With Dunn, we now operate a shredder facility in the UKs second largest city, while extending our footprint into new, targeted, regional markets.
He added: We welcome the Dunn team to the Sims Metal Management family and look forward to their many contributions to our business in the years ahead.
Financial terms
The acquisition was completed by Sims Metal Managements subsidiary Sims Group UK. The company did not disclose the financial terns of the transaction, but said the purchase price was not material to Sims Metal Management.
The significance of the transaction for Sims was further emphasised by Graham Davy, chief executive of European Metals and Global Sims Recycling Solutions, who said the company was excited by the opportunities the acquisition would present to Sims.
This deal places Sims Metal Management very firmly as a UK national player, present in key regions and offers both the business and post-consumer sectors quality recycling alternatives from our extended suite of metals recycling and electronic recycling services, he added.
The acquisition would appear to continue the trend towards consolidation in the UKs metal recycling sector, following on from purchases such as Sims buying Wincantons WEEE recycling assets last year (see letsrecycle.com story) and a number of acquisitions by European Metal Recycling in recent years (see letsrecycle.com story).
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