ISA Expands into Stainless Steel Recycling
Industrial Services of America, Inc., a company that buys, processes, and markets recyclable commodities and offers programs and equipment to help businesses manage wastes, has expanded into the stainless steel recycling market by purchasing inventories from Venture Metals, LLC and hiring two of its key executives.
Venture Metals, formed in 2006, buys and sells scrap metal, primarily in the stainless steel recycling market for super alloys and high temperature metals. The ISA purchase includes approximately $9 million of existing inventory. ISA has the right to use Venture Metals’ five-acre processing site at Campground Road in Louisville and plans to use a three-acre site in Mobile, Ala., upon assignment of the Venture Metals lease.
The all-cash transaction was funded through an existing line of credit, and ratified by ISA’s board of directors. ISA formed a new division, ISA Alloys, to specifically focus on the stainless steel recycling business.
"This transaction is a tremendous opportunity for ISA," said Brian Donaghy, ISA’s president and chief operating officer. "The success of Venture Metals’ talented leadership provides a solid foundation for expanding ISA’s capabilities in the stainless steel recycling market. Revenues from this new ISA Alloys division are expected to approximate the size of our existing ISA Recycling division. Additionally, this deal will provide new locations for building our ferrous and non-ferrous scrap metal and recycling businesses."
Joining ISA are Venture Metals co-founders Steven D. Jones, who oversaw Venture Metals’ Louisville operations, and Jeffrey P. Valentine, general manager of the Alabama facility. Jones and Valentine have experience as metals traders and have been responsible for all aspects of their facilities’ operations, including management, budgeting, purchasing, sales, and profitability.
Approximately 20 other employees of Venture Metals will join ISA Alloys in their current positions.
Jones said the opportunity to join ISA fits well strategically and operationally, as ISA provides an existing network of collection, transportation, and processing capabilities. ISA’s multi-million-dollar shredder will provide additional processing capabilities for providing custom blends for stainless customers.