Philip Services to Sell its UK Metals Business to Simsmetal Limited.Business Editors HAMILTON, ONTARIO--(BUSINESS WIRE)--Feb. 22, 2000 Philip Services Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : PHV PHV Plug-in Hybrid Vehicle PHV Peak Height Velocity PHV Peak Hour Volume (traffic & transportation engineering) PHV Protocol Handler (CDMA voice) PHV Protocol Handler for Voice .) today announced that it has signed a definitive agreement to sell its metals recycling and mill services businesses in the United Kingdom to Simsmetal Limited (ASX ASX See: Australian Stock Exchange : SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. ) for approximately US$50 million. The transaction is expected to close on or before March 31, 2000, subject to certain approvals, including Court approvals, regulatory approval and the approval of Philip's lenders. Proceeds from the sale will be applied against the Company's new term debt. "Simsmetal has had a long standing interest in acquiring our UK metals business due to the strength of our people, our operations and our market position in the southwest UK," said Anthony Fernandes, President and Chief Executive Officer. "This is a very beneficial transaction for both parties and provides Philip with an opportunity to reduce debt. We are in the process of evaluating future growth opportunities for our industrial services businesses in Europe, which has a market for our services equal to that of North America." Philip's UK metals business operates from 20 locations mainly in the South West of England The West of England is a loose term given to the area surrounding the City and County of Bristol, England. It is increasingly used - e.g. by the West of England Partnership - as a synonym for the former Avon (county) area. and Wales Wales, Welsh Cymru, western peninsula and political division (principality) of Great Britain (1991 pop. 2,798,200), 8,016 sq mi (20,761 sq km), west of England; politically united with England since 1536. The capital is Cardiff. , including 14 scrap collection and processing yards, five shredding and processing facilities, and a non-ferrous heavy media separation facility. Philip's UK metals business employs approximately 300 people and had 1999 revenue of approximately US$90 million. Philip's European industrial services businesses employ almost 200 people at 10 locations throughout the Netherlands, United Kingdom, Spain, Portugal and Germany. These services include industrial cleaning and maintenance, chemical supply and services, tank cleaning, recycling and automotive paint booth management services. Philip is also retaining its joint venture interest in the electric arc furnace An electric arc furnace (EAF) is a furnace that heats charged material by means of an electric arc. Arc furnaces range in size from small units of approximately one ton capacity (used in foundries for producing cast iron products) up to about 400 ton units used for secondary dust recycling facility in Cardiff. Philip Services is an integrated metals recovery and industrial services company with operations throughout the United States, Canada and Europe. Philip provides diversified metals services, together with by-products management and industrial outsourcing services, to all major industry sectors. |
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