Consolidation working the second time around

Nov 16, 2007 | 06:18 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 a decade ago, Vincent J. Pappalardo, managing director of Chicago investment bank Dresner Partners, said at AMM's Scrap Conference in Scottsdale, Ariz. 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 so far this year were Metal Management Inc.'s merger accord with Sims Group Ltd., Sydney, Australia; and Fort Wayne, Ind.-based mini-mill Steel Dynamics Inc.'s recent $1.1-billion acquisition of OmniSource Corp., also based in Fort Wayne.....

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