A growing New Jersey-based scrap metal recycling company has extended its reach into Western Pennsylvania with the $76 million acquisition of the Snyder Group, a local scrap recycler, headquartered on Neville Island. Metalico Inc., of Cranford, N.J., near Newark, said the purchase gives it the opportunity to expand its business at a time when the scrap recycling industry is benefiting from soaring prices and increased demand. "Given the favorable market trends and the high scrap steel prices that we are experiencing, it is a timely period to increase our exposure to the ferrous (containing iron) commodities," said Carlos E. Aguero, Metalico's CEO. Snyder, a family-owned business in its third generation, generated sales of $120 million and shipped 300,000 gross tons of ferrous and non-ferrous metals in 2007, according to Metalico. It's main recycling sites are on Neville Island and in Brownsville, Fayette County, and it operates several local feeder sites in the region, said Michael J. Drury, a spokesman for Metalico. Those operations are identified as Grand Avenue Inc., Assad Iron & Metals Inc., Heidelberg Metals Inc. (Neville Metals), Neville Recycling LLC and Platt Properties LLC, a group of affiliated companies. Going forward, the Snyder Group will operate as Metalico Neville Inc., with former owners James R. Snyder, Charles B. Snyder and Daniel R. Snyder, staying on in top management roles. They could not be reached for comment. No change is expected in local employment, which stands at about 115, Drury said. Escalating prices are driving a trend in scrap recycling industry mergers, experts say. "With the strong steel industry market both nationally and internationally, prices for scrap metal has reached record levels," said Tony Taccone, a partner of First River Consulting, a Pittsburgh steel and manufacturing consulting firm. Scrap metal obtained from automotive stamping plants -- the top-quality scrap used by most steel mills -- was selling for $461 per ton as of April 30, and is closer to $700 a ton today, he said. "The price has just skyrocketed over the past two weeks," he said. Last year on April 30 the price was $341 per ton, he said. "Scrap metal firms have to consolidate in order to have better negotiation power with the steel industry," he said, noting that steelmakers also have been merging. Some of the largest industry mergers have involved steel companies buying scrap operators, said Kent Kiser, publisher of Scrap, a trade publication of The Institute of Scrap Recycling Industries, Inc. "This is because steel mills want greater control and access to the scrap supplies that they need," said Kiser, whose organization represents almost 1,600 member companies. An example was Charlotte, N.C., steelmaker Nucor Corp.'s recently completed $1.44 billion acquisition of the David J. Joseph Co. of Cincinnati, he said. Meanwhile, scrap companies are merging, with examples including Australia's Sims Group's $1.6 billion acquisition of a Metal Management, out of Chicago last year. Metalico has been an active player, with the Snyder Group acquisition the latest of five deals since May of last year. The company now has 14 recycling facilities in New York, New Jersey, Texas, Mississippi, Ohio and Pennsylvania, and five lead fabrication plants in Alabama, Illinois, Nevada and California. "The Snyder Group is an excellent operator, with multiple operations within Pennsylvania," Kiser said. "They are just a great company to acquire if you want to get a great footing in that particular region." The Pittsburgh area has a number of other major scrap metal companies based here, including Glassport-based Tube City IMS LLC, the nation's largest scrap metal supplier. Tube City was acquired for $620 million in late 2006 by Onex Partners, a private equity fund that is a unit of Toronto-based Canadian buyout firm Onex Corp. "I certainly think that consolidation is going to continue in this industry," said Michael Coslov, Tube City's CEO. "We just don't know yet what part we are going to play in that." The company employs about 2,900, including about 400 to 500 in this area. It has operations at 69 steel mills in the United States, South America, Canada, Europe and Asia, obtaining raw materials and scrap and providing materials and slag processing under long-term contracts to mini-mills, foundries and integrated steelmakers. It also has its main retail scrap operation in West Mifflin. Coslov said the company plans to continue growing by adding more contracts with steel companies, but at the same time will weigh options for possible acquisitions, including on the retail side.