Sims to sell its stake in landfill gas company

Australia-based Sims Ltd., which operates metals and electronics recycling facilities in several nations, has entered into a definitive agreement to sell its 50 percent share of landfill gas-to-energy company LMS Energy Pty Ltd., also based in Australia.

The Sims share sale is to Pacific 2023 Holdco A Pty Ltd., an entity owned by funds advised by Pacific Equity Partners (PEP).

The recycling firm says the sale is in line with an investor disclosure it made this March. In August, Sims indicated it was making “good progress” on the sale of LMS.

Sims is receiving nearly $175 million for its stake in LMS, should the sale meet regulatory approval. The recycler also says the transaction  includes plans from PEP to support up to $128 million in capital growth initiatives across the bioenergy and methane abatement sectors in the United States, New Zealand and Australia.

“This strategic move allows us to streamline our business portfolio in line with the asset recycling strategy previously communicated,” says Alistair Field, CEO and managing director of Sims. “The funds generated from the sale will be allocated to strengthen the core metal business to create sustainable, long-term value for our shareholders.”

LMS owns and operates 36 biogas-to-energy facilities, 26 biogas flaring facilities and six solar projects. Sims itself employs about 4,400 people who operate some 200 recycling facilities in 15 countries, including the U.S., Australia and the United Kingdom.