In a press release, Pennsylvania based scrap metal recycler, USA Recycling, announced that it has signed a letter of intent to purchase 51% of Lucas Lane, Inc. Lucas Lane is a recycler of used oil filters.
Terms of the deal were not announced.
There is a large market opportunity for oil filter recycling. The 425 million used auto oil filters produced in the US each year contain 160,000 tons of iron and 18 million gallons of oil. Recycling all the filters sold annually in the United States would result in the recovery of about 160,000 tons of steel.
"Based on the number of oil filters used every year in this country, we believe that the addition of the collection and disposal of used oil filters is a lucrative opportunity that will add significant revenue to the Company's operations in the near term" said USA Recycling CEO, Vincent Smith, in the release. "The Lucas Lane LOI, combined with our direct end-user-consumer relationships with used motor oil re-refiners, solidifies our competitive advantage."
