Scrap consolidation not over yet, but multiples will vary widely
Nov 14, 2007 | 06:59 AM
| Frank Haflich
The scrap industry's acquisition binge isn't over, and it isn't likely to meet the same unhappy fate as the consolidation spree of the 1990s, either.
There is more merger and acquisition action today than "anybody's seen since the last consolidation" that took place in the 1990s, Vincent J. Pappalardo, managing director of Chicago investment bank Dresner Partners, said at AMM's Scrap Conference in Scottsdale, Ariz., this week. He estimated that 10 to 15 companies could be for sale, with his own company now working on a few deals.
The major deals announced this year were Metal Management Inc.'s plans to merge early next year with Sims Group Ltd., Sydney, Australia; and Fort Wayne, Ind.-based mini-mill steelmaker Steel Dynamics Inc.'s recent $1.1-billion takeover of OmniSource Corp., also based in Fort Wayne.....
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