South African gold miner Sibanye-Stillwate has agreed to acquire US-based metals recycling company Reldan for an enterprise value of $211.5m (R3.96bn).
The cash consideration for the acquisition is $155.4m.
Sibanye-Stillwater expects the transaction to be value-accretive and positively impact its earnings and cash flow immediately.
Based in Pennsylvania, Reldan reprocesses several waste streams such as industrial waste, including semiconductor scrap, plating waste and electronic waste such as mobile phones and tablets, to extract precious metals.
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The company processed 23 million pounds (mlb) of waste in 2022.
Last year, it produced 145 kilo-ounces (koz) of gold, 1.9 million ounces of silver, 22koz of palladium, 25koz of platinum and 3.4mlb of copper from the waste.
Reldan’s technology can process a variety of waste streams and has several environmental certifications and authorisations, along with long-term supplier networks.
These are said to help the company offer sustainable waste management solutions to its global clientele.
Last year, the company registered $371m in revenues, $42m in earnings before interest, taxes, depreciation and amortisation (EBITDA), and $28m in free cash flow.
Sibanye-Stillwater stated that Reldan’s purchase complements its US platinum group metals recycling business in Montana and offers a base for further expansion.
Sibanye-Stillwater CEO Neal Froneman said: “The strategic acquisition of Reldan is a further pivotal step in our company’s commitment to sustainability and our journey toward net zero. Reldan’s exceptional environmental, governance and safety standards position them as an industry leader, providing us with an exemplary platform to amplify our recycling efforts.
“We are excited to work alongside the Reldan management team and employees to seamlessly integrate and scale our operations, reinforcing our dedication to the advancement of green metals and recycling.”
The deal awaits regulatory approvals, with completion expected in the first quarter of next year.