This includes the value of retained working capital, subject to a completion mechanism linked to net asset value.
Completion remains subject to customary completion conditions, including obtaining regularly approvals, and is expected to be finalised before the end of Q1 in 2025.
The deal includes 28 facilities, including three port facilities and four shedders. Unimetals will assume responsibility for employees currently working the UKM business.
UKM sales are said to have represented approximately 14% of the total Sims Metal sales volumes in 2024. Going forward, the company’s metal portfolio will include Australia and New Zealand Metal, North America Metal (“NAM”) and its 50% interest in the SA Recycling Joint Venture.
Sims has also announced that it has signed a letter of intent to sell its remaining interest in CLP Circular Services Holdings for approximately US$32 million.
‘Optimal outcome’
Commenting on the transactions, Sims CEO and managing director, Stephen Mikkelsen said: “We conducted a comprehensive strategic review of UKM, evaluating all options, including a sale, forming a joint venture or restructuring the business. The board concluded that a sale provided the optimal outcome for Sims and its shareholders.
“By focusing on high-potential markets such as the United States, Australia and New Zealand, where our business position and demand for scrap are stronger, we can effectively leverage our strengths and drive sustainable growth.”
“We are pleased to have secured this transaction with Unimetals and the potential sale of our interest in Circular Services. This brings to a conclusion a programme of divestment that commenced in 2022.”
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