Posted on 13 Oct 2021
Cleveland-Cliffs- the largest flat-rolled steel producer in North America announced entry into scrap metal business by acquiring Detroit-based scrap metal company. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approvals and other customary closing conditions.
The company announced that it has entered into a definitive agreement to acquire Ferrous Processing and Trading Company (FTP) and related entities for a total enterprise value of approximately $775 million on a cash-free, debt-free basis.
FTP is one of the largest processors and distributors of prime ferrous scrap in the U.S. It currently processes around 3 million tons of scrap per year, with nearly 50% being prime grade. In total, it operates 22 scrap processing facilities in the country. The company had generated EBITDA of around $100 million in the one-year period ended 31st August, 2021. The company was selected as the 2019 winner of Scrap Company of the Year by Fastmarkets.
The transaction will help the company to optimize productivity at its existing EAFs and BOFs. In addition to expanding the portfolio of high-quality ferrous raw materials, it will also help secure substantial access to prime scrap.
Source:Scrap Monster
