PSC Metals exploring potential sale

Icahn Enterprises is exploring the potential sale of its metals recycling subsidiary PSC Metals, according to a source close to the matter.

Ohio-based PSC is currently marketing itself for sale, according to the source, who said that does not necessarily mean it will be sold.

Icahn Enterprises did not respond to Argus' request for comment.

PSC operates more than 30 scrap metal processing and trading locations in seven US states, primarily in the Midwest, Ohio valley and south.

The company has nine shredders, with four in Tennessee including Chattanooga, Harriman, Knoxville, and Nashville; three in Ohio, including Canton, Columbus, and Wooster; one in Beaver Falls, Pennsylvania, and one in St Louis, Missouri.

In its first quarter earnings yesterday, Icahn Enterprises said that the metals industry is "highly fragmented" and that a focus was on "capitalizing on consolidation and vertical integration opportunities."

Icahn's metals segment, which is entirely comprised of PSC, recorded a profit of $8mn in the 12 months ended 31 March on $347mn in sales. PSC broke even in 2020 and posted a $22mn loss in 2019.

The company did not provide data on volume or prices, but valued its total assets at $233mn over the same period.

By Brad MacAulay