Schnitzer to acquire Southeastern scrap dealer.

Schnitzer Steel Industries Inc., Portland, Ore., is using a wholly owned subsidiary to buy most of the assets of Regional Recycling LLC, Atlanta, for $65.5 million in cash and the assumption of certain liabilities.

Regional operates 10 metals recycling facilities, including three locations in Atlanta, plus locations in Gainesville, Cartersville, Rossville and Bainbridge, Ga., and locations in Birmingham, Attalla and Selma, Ala.

"The Regional acquisition is our initial step in growing the East Coast businesses that we will receive upon closing of the separation agreement with Hugo Neu Corp," John D. Carter, Schnitzer president and CEO, says. He adds that the Regional locations are "well situated" in the southeastern U.S., where the auto industry is growing.

Regional had $190.4 million in revenue and a healthy operating margin in 2004, Carter says.

Byron Kopman and David Romanoff, two of Regional's managers, will sign employment agreements and join Schnitzer's executive management team.

The deal is the second major one of the summer, following Australia's Simsmetal Ltd.'s purchase of Hugo Neu Corp., New York, in late June.