Metso Minerals has acquired Texas Shredder, Inc., a supplier of metal shredder products located in San Antonio, Texas. The sellers are a group of private investors led by Capital Southwest Corporation, a venture capital investment company. The acquisition price is approximately EUR 13 million.
Texas Shredder is the leading supplier of metal shredder plants and related aftermarket services in North America. The unaudited net sales of the company for the fiscal year, ending June 30, 2005, were EUR 46 million. It employs 33 people.
With the acquisition, Metso Minerals strengthens considerably its position in the North American metal recycling market, which is the largest in the world, processing approximately 70 million tons of metal scrap annually. Texas Shredder also complements Metso's downstream technology solutions and aftermarket capabilities. Texas Shredder's large installed base comprises over 60 shredder plants.
The acquired company will be merged with Metso Minerals' current metal recycling operations in the USA to form a new company, Metso Texas Shredder, Inc.
Metso's recycling business has developed favorably since it became a part of Metso Minerals in the Svedala acquisition in 2001: The net sales have nearly doubled in two years, reaching approximately EUR 130 million in 2004. Following the acquisition of Texas Shredder, the net sales are expected to reach EUR 200 million. The positive development is largely due to the global increase in steel demand.
Metso is a global technology corporation serving customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. In 2004, the net sales of Metso Corporation were approx. EUR 4 billion, and it has some 22,000 employees in more than 50 countries. Metso's shares are listed on the Helsinki and New York Stock Exchanges.
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