Sims Ltd, an Australia-based company that operates metals and electronics recycling facilities in several countries, has sold its 50% stake in LMS Energy Pty Ltd. to Pacific 2023 Holdco A Pty Ltd., an entity owned by funds advised by Pacific Equity Partners (PEP), for nearly AUD 175 million.
LMS Energy is a landfill gas-to-energy company that installs and manages biogas-to-energy systems and owns and operates 36 biogas-to-energy facilities, 26 biogas flaring facilities, and six solar projects.
Photo by Guilherme Cunha
The sale is in line with Sims’ asset recycling strategy to streamline its business portfolio and strengthen its core metal business to create sustainable, long-term value for its shareholders.
The funds generated from the sale will be allocated to the core metal business to support capital growth initiatives.
PEP plans to support up to AUD 128 million in capital growth initiatives across the bioenergy and methane abatement sectors in the United States, New Zealand, and Australia. The sale is subject to regulatory approval.
Sims has approximately 4,400 employees who operate around 200 recycling facilities in 15 countries, including the United States, Australia, and the United Kingdom. Sims’ core metal business includes ferrous and non-ferrous recycled metals, circular solutions, brokerage sales, and global trading.
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Sims also provides IT asset disposition, e-waste recycling, and data center decommissioning services through its Sims Lifecycle Services (SLS) and electronic recycling solutions through its China-based joint venture.
According to RBC Capital Markets, the sale of Sims’ stake in LMS Energy is a strategic move to focus on the core metals business. Sims Limited’s CEO and Managing Director, Alistair Field, said that the sale will allow the company to create sustainable, long-term value for its shareholders.
Analysts believe that the sale of Sims’ 50% stake in LMS Energy is a strategic move to strengthen the company’s position in the core metals business. Sims’ asset recycling strategy will allow the company to focus on its core business and streamline its portfolio.
In summary, Sims has sold its 50% stake in LMS Energy to Pacific 2023 Holdco A Pty Ltd. for nearly AUD 175 million. The sale is in line with Sims’ asset recycling strategy to strengthen its core metal business and create sustainable, long-term value for its shareholders. PEP plans to support up to AUD 128 million in capital growth initiatives across the bioenergy and methane abatement sectors in the United States, New Zealand, and Australia.
