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Signature Completes Metal Recycler Acquisition

Signature Group Holdings Inc. announced Friday it has completed the acquisition of Global Recycling and Specification Alloys for $525 million. The Sherman Oaks investment company will rename the business, formerly a division of Aleris Corp. in Cleveland, Real Alloy. It will be the world’s largest independent aluminum recycler, converting scrap metal into aluminum for use in the automotive, aerospace manufacturing, beverage packaging and construction industries. As a result of the deal, Signature expects its annual revenue to increase from less than $50 million to about $1.5 billion. Signature previously owned one operating subsidiary, North American Breaker Co. LLC in Burbank, but sold the business for $78 million to fund its acquisition of Real Alloy. Also, the company issued publicly traded notes to raise $305 million and held a secondary rights issue to raise $55 million to finance the acquisition. The company has arranged working capital facilities for $175 million to fund operations. Terry Hogan, who ran the aluminum operation at Aleris, will become president of Real Alloy. Shares closed down 9 cents or 1.2 percent to $7.45 in over-the-counter trading.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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