Australian Giant Sims Group to Buy Two US E-Waste Operations

Date: February 26, 2007

Source: News Room

Australian scrap giant Sims Group is buying two US electronic recycling operations for about $60 million to add to its rapidly growing electronic waste business. The acquisition of Chicago-based United Recycling Industries (URI) and a second US electronic waste recycler will make Sims the largest electronics recycler in North America handling an estimated 25 million units per year.

The acquisitions collectively handle about 4 million units per year and are expected to contribute $13 million in profits during the first year. Sims electronic recycling division, Recycling Solutions, made $17.5 million in EBIT profit for the first half of its fiscal year to December 31 2006, an 83 percent increase from $9.57 million a year earlier.

According to Sims Group CEO Jeremy Sutcliffe, "These acquisitions are a logical extension of our legislation-driven Recycling Solutions business in Europe." Sims Group is banking on future legislation in the US similar to the WEEE legislation in Europe, which would eventually require consumers to recycle electronic goods. Currently, most US electronics recycling is done by businesses with a marketing motive or a commitment to corporate social responsibility.

For more information, visit:
www.sims-group.com.

Sign up to receive our free Weekly News Bulletin