Orange, Calif.-based SAR, which is a joint venture of Sims Metal and Adams Steel, also retains through Sims Metal the working capital assets of the Arizona businesses, in Phoenix and Tuscon. That represents $15 million and brings the total expected cash generation of the sale to $50 million, Sims said in a news release.
Sims Metal Management is based in Sydney, Australia, and is the parent of Chicago-based Sims Recycling Solutions. SAR has operations in California, Nevada and Arizona.
Sims Metal expects to report a $12 million (Australian) loss in its first half of fiscal 2013 related to the sale.
“This is an exciting growth opportunity for SAR and fits perfectly into our southwestern U.S. footprint,” said George Adams, SAR CEO.