Date: February 23, 2009
Source: Industrial Services of America, Inc.
Industrial Services of America Finalizes Venture Metals Transaction
Mon. February 23, 2009; Posted: 11:50 PM
Industrial Services of America, Inc., a company that buys, processes and markets recyclable commodities and offers programs and equipment to help businesses manage wastes, said the company completed the purchase of stainless steel and high temperature metals inventories from Ventures Metals, LLC, and agreed to lease Venture Metals' processing equipment and facilities.
ISA announced January 20 it would enter the stainless steel and high-temperature metals recycling business through the purchase of Venture Metals' inventories and through access to processing sites leased at Campground Road in Louisville and in Mobile, Ala.
The agreement announced outlines the terms of the leases and provides ISA the option under certain conditions to buy Venture Metals' fixed assets - equipment such as cranes, forklifts, loaders, and scales - for approximately $1.5 million.
"We're pleased to add these stainless steel and high-temperature metals recycling lines to ISA, and we look forward to the numerous opportunities ahead in this business," said Brian Donaghy, ISA's President and Chief Operating Officer.
The transaction was funded through a $12.0 million Branch Banking and Trust Company (BB&T) non-revolving funding facility. As previously reported, ISA has contracts to market a substantial amount of the purchased stainless steel scrap inventory during the first quarter of fiscal 2009.
In addition to the transactions with Venture Metals, LLC and the related loan, ISA concluded the settlement of a suit filed by All American Recycling, which has returned control to ISA of a recycling retail operation. On February 9, ISA paid AAR approximately $990,000, which was reserved as of December 31, 2008, and certain other transaction and legal costs to settle a breach of agreement claim. For more information, please see the Form 8-K filed February 18. As of March 31, ISA will also re-gain access to several acres of property and facilities as part of the settlement to develop its shredder operations and to relocate its stainless operations to Grade Lane. ISA plans to renovate the Campground facility that is primarily a stainless yard at this time into a full-service yard that will feed ferrous, nonferrous and stainless material into the Grade Lane operations.
Headquartered in Louisville, Kentucky, Industrial Services of America, Inc., is a publicly traded company whose core business is buying, processing and marketing scrap metals and recyclable materials for domestic users and export markets. Additionally, the company offers commercial, industrial and business customers a variety of programs and equipment to efficiently manage waste.
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