Icahn Enterprises L.P.’s (NASDAQ: IEP) wholly-owned subsidiary, American Entertainment Properties Corp., has entered into a definitive agreement to sell the equity interests in PSC Metals, LLC to SA Recycling LLC, for total consideration of approximately $290 million (including indebtedness that will be repaid at closing, and subject to a customary working capital adjustment).
As of June 30, 2021, Icahn Enterprises had carried PSC Metals on its balance sheet at a value of $141 million. Icahn Enterprises has retained ownership of a strategic parcel of land previously owned by PSC Metals that is located near downtown Nashville and Nissan Stadium, and in connection with the transaction will lease this land to SA Recycling.
Carl C. Icahn, Chairman of Icahn Enterprises, stated: "Icahn Enterprises acquired its interest in PSC Metals in 2007. Even under challenging circumstances created by volatile commodity markets over the past several years, we executed our activist playbook with this investment – significantly increasing EBITDA. Given the cyclical nature of the company's industry, we believe today's transaction is appropriately timed and provides a very positive outcome for IEP unitholders."
The transaction is expected to close by the end of 2021, subject to receiving applicable regulatory approvals, and to the satisfaction of other customary closing conditions. The transaction is not subject to due diligence or financing conditions.
