Metso to acquire Texas Shredder

Recycling Today, Oct, 2005

Metso Minerals has acquired Texas Shredder Inc. (TSI), a supplier of metal shredder products headquartered in San Antonio.

The sellers are a group of private investors led by Capital Southwest Corp., a venture capital investment company based in Dallas.

The price of the acquisition is about $16 million.

According to a press release, Texas Shredder has unaudited net sales of about $56.5 million for the most recent fiscal year.

With the acquisition, Metso Minerals considerably expands its presence in the North American scrap metal recycling market, as TSI has more than 60 shredding plants installed. Texas Shredder's line also complements Metso's downstream technology solutions and aftermarket capabilities, according to the companies.

Texas Shredder will be merged with Metso Minerals' current metal recycling operations to form Metso Texas Shredder Inc.

According to the joint announcement, Metso's recycling business has developed favorably since it became part of Metso Minerals in the Svedala acquisition of 2001. Net sales have nearly doubled in two years. Following the acquisition of TSI, net sales are expected to reach $245 million.

Metso has also announced the sale of an $8.6 million shredder line to Makiura Steel Work Co. Ltd.'s recycling plant in Himeji City, Japan. Metso expects delivery to be completed by August 2006.

The sale includes a metal shredder, a complete downstream system for ferrous and nonferrous separation and de-dusting and a double-screw extrusion system for processing the light fraction.

Makiura is one of Japan's leading metal recycling firms, and the new line will reportedly make it the country's leading auto residue processor.