Metal recycler Sims has announced the sale of its 50% stake in bioenergy and methane-abatement company LMS Energy to funds advised by Pacific Equity Partners. The deal values the stake at AUD 272.1 million (USD 175.6 million).
The sale is in line with Sims’ plans to expand its core metals business and streamline its portfolio. Sims’ Chief Executive, Alistair Field, stated that the company’s strategy is to create sustainable, long-term value for shareholders by strengthening its core metal business. The funds generated from the sale will be reinvested in the metal business.
The completion of the sale is expected to take place in the second quarter of fiscal 2024.
This strategic move aligns with Sims’ asset recycling strategy, allowing the company to focus on its core operations while divesting its interest in LMS Energy. Sims aims to optimize profitability and drive growth in its metals business, where it has a strong presence.
The sale of the stake to Pacific Equity Partners demonstrates the attractiveness of the renewable energy sector and the potential for significant returns. This transaction reflects the growing interest in bioenergy and methane-abatement solutions, which play a crucial role in sustainability and emissions reduction.
Sims’ decision to sell its stake in LMS Energy not only brings financial benefits but also positions the company to further leverage its expertise in the metals industry. By concentrating on its core business, Sims can dedicate more resources to innovation, technological advancements, and strategic partnerships.
This divestment marks a significant step for Sims and showcases its commitment to adapt, evolve, and maximize value for its shareholders. It also underscores the broader trend of companies reevaluating their portfolios to capitalize on emerging opportunities in sustainable industries.
Sources:
– Rhiannon Hoyle: [email protected]