Australian-listed firm Sims said the move was a continuation of its strategy “to expand the geographical coverage of its metals business”.
The West Midlands region is an area of the country where Sims Group has been keen to strengthen its foothold for some time.
Tom Bird, Sims Group
It is the second acquisition by Sims in the UK this year, following the takeover of South Wales firm Cymru Metals Recycling Limited (see letsrecycle.com story).
ER Coley (Steel) Limited is based in Halesowen and will continue to trade from its James Scott Road facility.
Tom Bird, managing director, Sims Group UK, commented: “The West Midlands region is an area of the country where Sims Group has been keen to strengthen its foothold for some time and this acquisition presents us with a wonderful opportunity to expand our presence in the industrial heartland of the UK.”
The second largest metal recycling operator within the UK, worldwide Sims Group now runs 148 sites, recovering more than nine million tonnes of metal each year, including steel, copper and aluminium.
Expansion
The company reshuffled its senior management team last month (see letsrecycle.com story), including the appointment of Mr Bird as managing director of its UK arm, as it continues its strategy of expansion through acquisitions.
Sims was advised on the acquisition of ER Coley by the Birmingham office of international law firm, Eversheds. KPMG Corporate Finance in Birmingham advised shareholders on the sale of the business, as well as providing due diligence work.
Gary Davies, who leads KPMG's metal recycling advisory team, said: “The sale of ER Coley is the latest in a series of corporate transactions advised on by KPMG in the metal recycling sector and illustrates the demand for both high quality businesses and management in a consolidating market place.”
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