Dive Brief:
- Adam Weitsman, the CEO of Upstate Shredding LLC, submitted a proposal to acquire the remaining outstanding shares of Metalico for a cash payment of $0.78 per share.
- In January, Weitsman acquired 5.6 million shares of his competitor for a purchase price of approximately $2.6 million, and now holds an 11.7%% stake in the scrap metal processing company.
- In response to the offer, Metalico announced it will evaluate its business strategies and advise the board about the future outlook of the company.
Dive Insight:
In his letter to Metalico Chairman and CEO Carlos E. Aguero, Weitsman wrote, “I strongly believe that Metalico has great potential, but do not believe it is in the best interest of stockholders for Metalico to continue as an independent company, let alone a public company, given Metalico’s long-term underperformance and poor stock price performance.”
Weitsman said he had been denied the opportunity to meet with Metalico to discuss the proposal, so he decided to announce it publicly.
