New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
December 17, 2012
12:08 EDTMEAMetalico expands presence in Ohio, New York
Metalico has increased its scrap metal recycling presence in northeastern Ohio and Western New York with a new venture in the Cleveland market and an acquisition in the Greater Rochester area. In Cleveland, the company has set up operations in a joint venture at 3018 East 55th Street, the site of a previous scrap yard in the city’s traditional industrial sector. Managed by industry veteran Joseph Immormino, the strategically located facility, operating as “Metalico JBI Cleveland,” is expected to develop a brisk scrap peddler flow and to service new accounts while supporting Metalico’s existing yards in Akron and Youngstown. The Company’s Metalico Rochester subsidiary has purchased the assets of Bergen Auto Recycling, including its junk car inventory and real property located at 7652 Clinton Street Road in suburban Bergen, New York. Metalico plans to significantly expand Bergen Auto’s salvage car buying capabilities and continue its “pick-and-pull” auto parts business while taking advantage of additional access to scrap metal to feed its shredding facility in Buffalo, New York. Terms and consideration for the two transactions were not disclosed.
News For MEA From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
June 16, 2015
08:34 EDTMEAMetalico agrees to be acquired by Total Merchant for $87M
The board of Metalico has agreed to sell the company to Total Merchant Limited for a total purchase price of approximately $87M. The all-cash deal will include a payment to Metalico's stockholders of 60c for each share of Metalico common stock owned by them as of the date of closing. The price includes roughly $44M for Metalico's outstanding equity plus the cost of retiring the company's primary term and institutional senior and convertible debt, estimated at approximately $45M and the assumption of approximately $16M of additional debt as of June 15. Under the terms of the governing Merger Agreement, a subsidiary of Total Merchant will merge with and into Metalico, making Metalico a wholly owned subsidiary of Total Merchant. The merger is subject to certain closing conditions, including approval of the Merger Agreement by holders of a majority of Metalico's outstanding common stock and other customary conditions. However, no regulatory approval is required. The transaction is expected to close in Q3. Under the terms of the Merger Agreement, Metalico has agreed not to solicit alternative proposals for an acquisition of the company. However, Metalico is able to consider unsolicited proposals pursuant to the exercise of its board's fiduciary duties with Total Merchant having customary rights to match any proposal. Metalico would be required to pay Total Merchant a termination fee equal to $2.25M if Metalico terminates the Merger Agreement to accept a superior proposal. In addition, Total Merchant has agreed to a penalty of $3.12M if it fails to close the transaction assuming all closing conditions have been satisfied. Total Merchant has agreed to escrow this amount. Total Merchant has also indicated it intends to retain Metalico's management and all other personnel.

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use