The CEO of Upstate Shredding LLC-Ben Weitsman Recycling has made an offer to buy all outstanding shares of competing scrap recycling firm Metalico Inc. for 78 cents per share, a deal that would be worth about $45.5 million.
Adam Weitsman of the Oswego, N.Y.-based Upstate sent a written proposal to Carlos Aguero, chairman, president and CEO of the Cranford, N.J.-based Metalico.
Weitsman’s proposal represents about a 32-percent premium to the average market price of Metalico’s shares during the past 30 days and a 27-percent premium to the closing price on Feb. 20, according to a news release.
Weitsman purchased 5.56 million shares of its biggest competitor in January and currently owns about 11.7 percent of Metalico’s (MEA) outstanding common stock.
"I am deeply disappointed by the apparent unwillingness of MEA's board and management to meet with me to date, despite my significant holdings in MEA," Weitsman said. "As a result, I have decided to publicly announce my proposal to acquire MEA, which I believe represents a compelling opportunity for MEA's stockholders to obtain liquidity for their shares while maximizing the value of their shares at a premium. I strongly believe that MEA has great potential but do not believe it is in the best interest of stockholders for MEA to continue as an independent company, let alone a public company, given MEA's long-term underperformance and poor stock price performance.”
Upstate Shredding has been expanding aggressively in the Northeast.
Metalico employs 600 people in 27 operating locations in seven states.