NEWS
Greenwave Technology Solutions, Inc. Strategically Positions for Growth in Rapidly Consolidating U.S. Scrap Metal Industry
Friday, 6th December at 8:29 am
CHESAPEAKE, Va., Dec. 6, 2024 /PRNewswire/ -- Greenwave Technology Solutions, Inc. (NASDAQ: GWAV) ("Greenwave" or the "Company"), a leader in metal recycling operations across Virginia, North Carolina, and Ohio, announces strategic developments poised to deliver shareholder value in a rapidly consolidating scrap metal market.
Friday, 6th December at 8:29 am
CHESAPEAKE, Va., Dec. 6, 2024 /PRNewswire/ -- Greenwave Technology Solutions, Inc. (NASDAQ: GWAV) ("Greenwave" or the "Company"), a leader in metal recycling operations across Virginia, North Carolina, and Ohio, announces strategic developments poised to deliver shareholder value in a rapidly consolidating scrap metal market.
Key Highlights
• $1.7 Million Annual Cost Savings: Greenwave recently acquired the real estate for seven of its core facilities, thereby reducing its annual rent expenses by approximately $1.7 million, enhancing cashflow and positioning Greenwave for future growth and potential high-value strategic transactions.
• Twenty Year Relationship with Sims Metal: Greenwave generated $20.7 and $18.0 million in revenue from Sims Metal, the world's largest scrap metal company, in 2023 and 2022, respectively, underscoring market confidence.
• Significant M&A Activity in Scrap Metal: Steelmakers are leading a wave of consolidation, securing supply of raw materials to feed a projected increase of 16 million tons of annual capacity in the coming years.(1)
Peer Benchmarking Supports Valuation Upside
Recent transactions indicate substantial valuation potential for Greenwave:
• Sims Metal acquired Baltimore Scrap Corp. for $220 millionin August 2023. Baltimore Scrap operates 17 yards, four shredders, and processes 600,000 metric tons of scrap each year.(2)
• Nucor acquired the assets of Garden Street Iron & Metal, including one feeder and one shredder yard, in 2023. The terms of the acquisition were not disclosed.(3)
• Cleveland-Cliffs acquired Ferrous Processing and Trading Co. for $775 million in 2021. FPT is a leading U.S. processor, buyer, seller, and recycler of scrap metals.(4)
• Steel Dynamics completed the acquisition of Roca Acero for $90 million in October 2022. Roca Acero's operations include five scrap processing facilities in Northern and central Mexico, with an annual processing capacity of approximately 850,000 gross tons.(5)
Unlocking Shareholder Value
Greenwave's strong operational footprint and relationships with industry leaders – Nucor Corporation, Sims Metal Management, and Cleveland-Cliffs, Inc. – position the Company to capitalize on robust domestic demand and favorable policy shifts. As regional steel supply chains pivot toward sustainable and domestically sourced metals, Greenwave is optimally positioned for rapid growth and strategic transactions to unlock shareholder value.
• $1.7 Million Annual Cost Savings: Greenwave recently acquired the real estate for seven of its core facilities, thereby reducing its annual rent expenses by approximately $1.7 million, enhancing cashflow and positioning Greenwave for future growth and potential high-value strategic transactions.
• Twenty Year Relationship with Sims Metal: Greenwave generated $20.7 and $18.0 million in revenue from Sims Metal, the world's largest scrap metal company, in 2023 and 2022, respectively, underscoring market confidence.
• Significant M&A Activity in Scrap Metal: Steelmakers are leading a wave of consolidation, securing supply of raw materials to feed a projected increase of 16 million tons of annual capacity in the coming years.(1)
Peer Benchmarking Supports Valuation Upside
Recent transactions indicate substantial valuation potential for Greenwave:
• Sims Metal acquired Baltimore Scrap Corp. for $220 millionin August 2023. Baltimore Scrap operates 17 yards, four shredders, and processes 600,000 metric tons of scrap each year.(2)
• Nucor acquired the assets of Garden Street Iron & Metal, including one feeder and one shredder yard, in 2023. The terms of the acquisition were not disclosed.(3)
• Cleveland-Cliffs acquired Ferrous Processing and Trading Co. for $775 million in 2021. FPT is a leading U.S. processor, buyer, seller, and recycler of scrap metals.(4)
• Steel Dynamics completed the acquisition of Roca Acero for $90 million in October 2022. Roca Acero's operations include five scrap processing facilities in Northern and central Mexico, with an annual processing capacity of approximately 850,000 gross tons.(5)
Unlocking Shareholder Value
Greenwave's strong operational footprint and relationships with industry leaders – Nucor Corporation, Sims Metal Management, and Cleveland-Cliffs, Inc. – position the Company to capitalize on robust domestic demand and favorable policy shifts. As regional steel supply chains pivot toward sustainable and domestically sourced metals, Greenwave is optimally positioned for rapid growth and strategic transactions to unlock shareholder value.
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