American Iron & Metal To Acquire U.S. Shredding Plants

SEATTLE (Scrap Monster):  American Iron & Metal (AIM) announced that its subsidiaries have purchased auto shredding plants operated by the U.S. subsidiary of Hong Kong-based Chiho Environmental Group Limited.

The deal covers shredding facilities in Erie, Pennsylvania and Pheonix, which were purchased by AIM Ereie and EIM Phoenix respectively. The closing of the deal is subject to satisfaction of certain precedent conditions as well as regulatory approvals.

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In accordance with the Hong Kong Exchange disclosure filing by Chiho, AIM has agreed to pay $17.3 million towards the equipment and metal assets and additional $12.7 million for the four parcels of land that AIM plans to acquire from it.

The strategic decision to divest its Southwest operations in the U.S. has been arrived at after a thorough portfolio and geographic footprint review, aimed at further improving its business efficiency. The transaction will allow Chiho to divert its resources to better performing assets. The proceeds from the transaction will be used to repay existing bank loans and to target growth opportunities.

The transaction marks complete exit of Chiho from the U.S. market. At the same time, it testifies expansion of Canada-based AIM’s presence in the U.S. market.