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Metalico Sold to Chinese Firm Total Merchant Ltd.

Written by Sandy Williams

June 16, 2015

Metalico, Inc., a U.S. scrap metal processor, has been sold to Chinese investment firm Total Merchant Limited for approximately $105 million. In an announcement on Tuesday, Metalico said it will become a wholly owned subsidiary of Total Merchant and expects to close the transaction by August 31, 2015, subject to shareholder approval and customary closing conditions. No regulatory approval is required.

Total Merchant is controlled by Mr. Chung Sheng Huang, the Chairman of the Board and Managing Director of Ye Chiu Group, a leading recycler and producer of aluminum and aluminum alloys and a prominent Asian scrap metal recycler with operating facilities in China and Malaysia.

Metalico’s shareholders will receive $0.60 for each share of common stock owned at the date of closing.

Metalico’s Board of Directors has been investigating and evaluating strategic alternatives for the Company’s future since early January. The company said it “selected Total Merchant’s offer after a review of several strategies, including continued independence as a public corporation, combinations or joint ventures with suitable partners or investors, sales of assets, and a sale of the Company, and analyses of several bids, including both solicited and unsolicited proposals from competitors, industrial concerns and strategic investors.”

Total Merchant has indicated it will retain Metalico’s management and personnel.

Metalico, Inc. and its subsidiaries operate ferrous and non-ferrous scrap metal recycling sites, including PGM and Minor Metals Recycling facilities. Company recycling locations, including three automobile shredders, are located in New York, Pennsylvania, Ohio, West Virginia, New Jersey and Mississippi. A majority of its ferrous scrap is sold to Ohio Valley mills.

Sandy Williams

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