Horsehead Holding Corp. to Acquire The International Metals Reclamation Company ('INMETCO')
December 02 2009 - 8:00AM
PR Newswire (US)
PITTSBURGH, Dec. 2 /PRNewswire-FirstCall/ -- Horsehead Holding
Corp. ("Horsehead") (NASDAQ:ZINC), the parent company of Horsehead
Corporation, a leading U.S. producer of specialty zinc and
zinc-based products and a leading recycler of electric arc furnace
("EAF") dust, a listed hazardous waste, today announced its plans
to acquire INMETCO, a leading recycler of metals-bearing wastes in
North America. Based in Ellwood City, PA, INMETCO employs 108
people and operates the only secondary smelter in North America
dedicated to recycling nickel, chromium and other metals from
hazardous and non-hazardous wastes generated mostly by stainless
steel and specialty metals producers. INMETCO is also a leading
processer of nickel-cadmium (NiCd) batteries, and its process has
been recognized by the U.S. EPA as the Best Demonstrated Available
Technology for the recycling of NiCd batteries. In 2008, INMETCO
generated earnings before interest, taxes, depreciation, and
amortization of $12.8 million on revenue of $61.1 million on total
remelt alloy shipments of approximately 27,000 tons. The
combination of Horsehead and INMETCO will enhance Horsehead's
hazardous waste services platform and diversify its range of
capabilities and products including the recycling of electric arc
furnace dust and stainless steel flue dust for the recovery and
reuse of a wide range of valuable metals. Jim Hensler, Chairman,
President and CEO of Horsehead, commented: "The acquisition of
INMETCO expands Horsehead's industrial metals portfolio while
leveraging our key strengths in hazardous waste management and high
temperature metals recovery." Under the terms of the Stock Purchase
Agreement, Horsehead is expected to pay a purchase price of $34.0
million in cash, subject to adjustment, and the assumption of
certain financial assurance obligations associated with
environmental regulatory requirements that are currently in the
form of a $8.55 million letter of credit. The acquisition is
expected to close on December 31, 2009, subject to the satisfaction
or waiver of customary closing conditions. Stifel, Nicolaus &
Company, Incorporated acted as Horsehead's exclusive financial
advisor for this transaction. About Horsehead Holding Corp.
Horsehead Holding Corp. is a leading U.S. producer of specialty
zinc and zinc-based products and a leading recycler of electric arc
furnace ("EAF") dust, a hazardous waste produced by the carbon
steel mini-mill manufacturing process. Headquartered in Pittsburgh,
PA, Horsehead employs over 800 people and has seven locations
throughout the U.S. About INMETCO INMETCO is a leading U.S.
recycler of hazardous and non-hazardous waste for the specialty
steel industry. It is also a significant processor of other
metal-bearing wastes, including industrial and consumer batteries.
INMETCO is based in Ellwood City, PA and employs 108 people. It is
an indirect, wholly-owned subsidiary of Vale Inco Limited, a
leading producer of nickel, copper and cobalt, based in Toronto,
Ontario. Cautionary Statement about Forward-Looking Statements This
press release includes forward-looking statements within the
meaning of the "Safe-Harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties and actual results may differ materially
from those predicted by the forward-looking statements. These
statements are necessarily subject to risk and uncertainty and
actual outcomes could differ materially due to various risk
factors, including those set forth from time to time in our filings
with the Securities and Exchange Commission. You should not place
undue reliance on forward-looking statements and we undertake no
obligation to update any such statements. You should carefully read
the risk factors and other information in our filings with the
Securities and Exchange Commission for a description of certain
risks that could, among other things, cause actual outcomes to
differ from these forward-looking statements. DATASOURCE: Horsehead
Holding Corp. CONTACT: Ali Alavi, +1-724-773-2212 Web Site:
http://www.horsehead.net/
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