HOUSTON: Global metal recycling company Sims Group announced a strategic acquisition Tuesday to consolidate its Houston operations, a move it says will expand market share and unlock significant real estate value.
The company entered into an agreement to acquire Tri-Coastal Trading in Houston for $66.5 million. The deal values the operation at less than four times its projected earnings before interest, taxes, depreciation and amortization, after planned cost savings are realized. The transaction is structured on a cash-free, debt-free basis.
Executives said the acquisition will add approximately 350,000 metric tons per year of ferrous scrap processing capacity and includes an 18-year third-party operations contract with options for two five-year extensions. A key benefit, the company noted, is gaining direct deep-water access, eliminating the need to develop its existing Mayo Shell site in Houston.
To help fund the purchase, Sims has agreed to sell its Mayo Shell property, pending due diligence and approvals. The company identified that site and other Houston land holdings as surplus, projecting over $100 million in proceeds from divestments within one to two years.
Rob Thompson, president of North American Metal for Sims, outlined the strategic rationale. He said the deal optimizes the company’s footprint in a key region, provides material cost savings and improves logistics through a single strategic hub for truck, barge and rail transport.
The company expects the consolidation to lift ferrous scrap volumes, improve its commercial position and reduce costs per ton. Capital originally earmarked for the Mayo Shell site development will be redeployed into core operations, executives said.
Sims Group, listed on the Australian Securities Exchange, cautioned that the presentation contained forward-looking statements subject to risks and uncertainties. The information is dated Feb. 10, 2026, and is provided in summary form.
The company will host its half-year financial results on Feb. 17 in Sydney. A U.S. investor day and site tours in Houston and Nashville are scheduled for late March.