OWEGO, N.Y. — Upstate Shredding, LLC and sister company Weitsman Recycling have submitted a non-binding offer to acquire all the outstanding shares of common stock of Fenix Parts, Inc. (OTC: FENX) for 50 cents per share.
Fenix Parts Inc. is a Westchester, Illinois–based recycler and reseller of original equipment manufacturer (OEM) automotive products in the U.S. and Canada, according to its website.
The purchase price represents an all-cash premium of about 46 percent over the company’s closing price of 27 cents a share on Feb. 8, the Owego–based recycling giant said in a news release issued last Friday afternoon. The stock was trading at 48 cents a share in late Tuesday afternoon trading.
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Adam Weitsman, president and CEO of Upstate Shredding, wrote a letter to Kent Robertson, president and CEO of Fenix Parts, outlining the acquisition proposal.
In it, Weitsman wrote, “We are prepared to move expeditiously and cooperatively to complete a transaction and are available to discuss this proposal with Fenix’s board of directors at your earliest convenience.”
New York City–based law firm Olshan Frome Wolosky LLP is representing Upstate Shredding in a potential transaction, according to the letter.
Upstate Shredding describes itself as “the East Coast’s largest privately-owned scrap metal processor and one of the largest in the United States.”
Upstate operates from 16 locations located throughout the Northeast, which are “capable” of processing over 1 million tons of ferrous scrap and 200 million pounds of nonferrous scrap, Weitsman indicated in the letter to Robertson.
Contact Reinhardt at ereinhardt@cnybj.com
