Sims Metal Management Ltd expands its European operations in electronic recycling sector

Sims Metal Management Limited (SimsMM) has expanded its European operations in the electronics recycling market by acquiring two computer and information technology asset recovery companies, Dutch based Device, and German company, ergoTrade. The financial terms of the transaction were not disclosed.

The investment is a strategic fit for Sims Metal and marks an important milestone in the firm’s quest to extend the success of its ICT asset recovery and lifecycle management business further into Europe. Device has operations in the Netherlands, Poland and the Czech Republic whilst ergoTrade has operations in Germany and Hungary.

Graham Davy, Chief Executive Officer of Sims Metal Management’s global Sims Recycling Solutions division commented that with these acquisitions, SimsMM will become the market leader in Germany for ICT asset recovery. Davy said the unique setup of sites across Continental Europe will enable SimsMM strengthen its service offerings to clients with multi-national responsibilities.

Mr. Davy reiterated that the two businesses, Device and ergoTrade, bring expertise within their local and neighboring markets and a number of synergies, which lead the field in providing solutions to the European WEEE Directive’s challenge of ‘reduce, re-use, recycle’.

Sims Metal Management is the world’s largest listed metal recycler with approximately 240 facilities and 5,700 employees globally. Sims’ core businesses are metal recycling and recycling solutions. Sims Metal Management generated approximately 90 per cent of its revenue from operations in North America, the United Kingdom, Continental Europe, New Zealand and Asia in fiscal 2010.

Sims Metal is North America’s and Australasia’s, largest metals and electronics recycler. Sims Metal Management today has over 230 locations on five continents.

ergoTrade AG has more than 5 years experience with the remarketing/refurbishing industry. The firm is located in South-Germany, directly at Munich Airport. It offers pan-European refurbishing services, and worldwide remarketing solutions. Its main sales activities are focused on Eastern Europe, especially on Hungary, Czech Republic, Romania, former Yugoslavia & Bulgaria. Currently the firm is expanding its activities to the Middle East & Africa. However, ergoTrade has clients in more than 40 different countries.

For the first half of fiscal 2011, Sims Metal Management had sales revenue of $3.9 billion and a net profit after tax of $49.3 million. Sales revenue increased 17 per cent on the prior corresponding period. EBITDA of $148.9 million was up 9 per cent on the prior corresponding period related to higher sales, improved margins and operating expense controls.

21st March 2011

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