Australia-based Sims Ltd. has agreed to sell a controlling stake in Sims Municipal Recycling of New York LLC (SMR) to a group of investors, including investment funds managed by New York-based Closed Loop Partners. . Pursuant to the transaction, Sims will sell 50.46% of Sims Municipal Recycling for $ 45.4 million and hold two of the five seats on the Sims Municipal Recycling board of directors.
According to a press release from Sims Ltd., this transaction is expected to close in the third quarter of 2022.
Sims Municipal Recycling was established in 2003 and provides curbside recycling, processing and marketing services in New York City. It operates four recycling facilities, including three in the New York-New Jersey metro area and one in Florida. Last year, Sims Municipal Recycling processed 660,000 metric tonnes of municipal curbside waste.
Closed Loop Partners manages venture capital, growth capital, private equity and project-based finance funds, all focused on building the circular economy. Investors in Closed Loop Partners include pension funds, foundations, consumer goods companies and family offices focused on environmental, social and governance investments and the circular economy.
According to a statement from Closed Loop Partners at Recycle todayClosed Loop Partners expects the acquisition to step up its focus on investing in upgrading recycling facilities across the United States and closing the materials loop.
“This transaction demonstrates Sims’ leadership and commitment to innovate quickly and at scale and maximize opportunities within the circular economy,” said Alistair Field, CEO and Managing Director of Sims Ltd. “I am delighted that we have been able to secure a high quality, like-minded joint venture partner who will work alongside us to create a waste-free world to preserve our planet. Closed Loop Partners has the strategic management focus and expertise to help take on faster [Sims Municipal Recycling] to the next level in the expansion of recycling beyond New York City. Together, we seek to expand the materials accepted by SMR, optimize the accessibility of recycling in New York City, and significantly expand SMR’s service areas across the United States.
Réal Hamilton-Romeo, global communications and marketing manager at Sims, said the company plans to remain a primary owner of SMR. She says SMR’s management and operations teams will remain the same once the transaction is finalized. Additionally, she says Sims Municipal Recycling will keep its name due to its strong brand awareness.
“Sims Ltd. and Closed Loop Partners share a common goal of a world without waste,” says Hamilton-Romeo. “As a co-owner of Sims Municipal Recycling, Closed Loop Partners will leverage its extensive network to further develop the curbside recycling business and expand Sims Municipal Recycling to other municipalities and other post-consumer recycling streams. Sims Ltd. continue to be actively involved in the growth of Sims Municipal Recycling and serve on the company’s board of directors. ”
Field adds that the company plans to use the sale price to help fund other transactions the company has made recently, such as its acquisition of Recyclers Australia and Atlantic Recycling Group, which has two sites in Baltimore operating under the United Iron & Metal name, including a grinding yard, as well as a location as Montgomery Scrap in Rockville, Maryland.