Sims nears completion of UK asset sale

Australia-based Sims Ltd. has reached completion on the previously announced sale of its United Kingdom Metal business (UKM) to London-based Unimetals Ltd.

According to Sims, since the agreement was reached in August, initial cash proceeds of about 40 million British pounds ($52.5 million) have been received from the conversion of working capital surplus to Unimetals’ specified requirements.

Additionally, Sims says after-tax cash proceeds of approximately 182 million pounds ($239 million) attached to transferred U.K. assets has been received or will be transferred in stages between now and June 20, 2025.

“This transaction is aligned with Sims' strategy to focus on high-potential markets such as [the] United States, Australia and New Zealand, where stronger demand for scrap allows the company to maximize its strengths,” Sims says.

“The proceeds will initially be used to strengthen the balance sheet. The company intends to continue to take a balanced approach to driving business growth and returning cash to shareholders over the medium term.”

Recycling facility buyer Unimetals, on its website, says it now operates one of the U.K.’s largest networks of scrap metal purchasing businesses.

The firm lists Jamie Afnaim, formerly with London-based emerging markets asset management and commodity trading business Gemcorp, as one of its co-founders, along with Alec E. Sellem, who has a mining and metals refining background.