SIMS LIMITED — M&A Activity 2023

Aug 14, 2023

ASX & MEDIA RELEASE (ASX: SGM, USOTC: SMSMY) 15 August 2023

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Sims Limited acquisition of Baltimore Scrap Corp

Sims Limited (the “Company”) today announced it has agreed to acquire the assets of United States based metal recycler, Baltimore Scrap Corp and its affiliated entities (BSC). The acquisition is anticipated to close in October 2023 subject to the satisfaction or waiver of customary closing conditions, including required regulatory approvals.

BSC is one of the largest metal recyclers in the United States Northeast with 17 facilities across five states - Maryland, Virginia, Pennsylvania, New York, and New Jersey with sales volumes of approximately 600,000 tonnes per annum. BSC’s operations include four shredders and extensive rail, barge and port infrastructure and are well-positioned with attractive proximity to both growing domestic demand markets and export.

Total consideration for the acquisition is US$177 million, plus working capital and other adjustments to be determined at closing. The transaction implies an EV/EBITDA multiple of 5.4x on a three year trailing average, pre-synergies basis. On an equivalent post-synergies basis, the EV/EBITDA multiple is forecasted to reduce to 4.2x.

This transaction is consistent with Sims Limited’s strategy to grow its core metal recycling business in large markets, by operating best-in-class assets and producing high-quality differiented outputs, with efficient logistic channels to an expanding customer base.

Sims Limited CEO and Managing Director Alistair Field, said: “Baltimore Scrap Corp is a company we have admired for many years, with a strong management team that has built an excellent business over many years. This acquisition is a highly complementary fit with Sims’ strategy to expand our metal recycling business in North America, and increase our diversity of sales channels to growing US domestic demand for ferrous and non-ferrous scrap metal. I welcome the Baltimore Scrap Corp team and its group of affliates to the Sims family.”

Stephen Mikkelsen, Group CFO of Sims Limited, added, “The BSC acquisition is another example of Sims’ capital recycling strategy. We anticipate the acquisition to be substantially funded through the redeployment of proceeds from non-core asset sales and other assets that are not likely to achieve their required rate of return.”

Authorised for release by: The Board of Sims Limited

About Sims Limited

Founded in 1917, Sims Limited is a global leader in sustainability and an enabler of the circular economy that employs 4,400 employees who operate from more than 200 facilities across 15 countries. The Company’s ordinary shares are listed on the Australian Securities Exchange (ASX: SGM) and its American Depositary Shares are quoted on the Over-the-Counter market in the United States (USOTC: SMSMY). Our purpose, create a world without waste to preserve our planet, is what drives us to constantly innovate and offer new solutions in the circular economy for consumers, businesses, governments and communities around the world. For more information, visit www.simltd.com.

Head Office: level 9, 189 O’Riordan Street, Mascot, NSW, Australia 2020

Contacts:

Investors Ana Metelo Group Director, Investor Relations ana.metelo@simsmm.com

Media

Réal Hamilton-Romeo Global Head Communications and Marketing real.hamiltonromeo@simsmm.com