End-to-end recycling solutions provider Close the Loop (ASX:CLG) reports it has acquired the US-based recycling company In-Plas Recycling.
The company says the US$4 million acquisition expands both companies’ services offering recycled plastics processing, and delivers on Close the Loop’s strategy of growing within the recycling space in line with its core focus on the circular economy.
Due to the complementary parts of the market that both companies operate, the acquisition increases the product suite that Close the Loop can sell into the plastics secondary market in North America. The company also notes this acquisition expands the processing capability of certain In-Plas Recycling products, creating more markets for the current In-Plas product suite.
The acquisition is expected to be immediately earning per share (EPS) accretive on a pre and post-synergy proforma statutory financial year 2023 basis, adding US$1.1 million to Close the Loop’s earnings before interest, taxes, depreciation and amortisation (EBITDA).
“The acquisition significantly expands our recycling scope and capabilities in North America as well as our presence on the plastics commodities market”
Commenting on the acquisition, Close the Loop Chief Executive Officer Joe Foster says: “We are pleased to be entering additional markets via the acquisition of In-Plas Recycling. The acquisition significantly expands our recycling scope and capabilities in North America as well as our presence on the plastics commodities market.
In-Plas Recycling not only gives us ownership of a US-based recycler and processor but provides strong sales growth, profitability and delivers a diverse suite of well-established and loyal clients.
The synergies between In-Plas Recycling and Close the Loop provide for considerable opportunities for growth. A senior member of our US management team has prior experience working with In-Plas, and both companies’ complementary services mean we are able to combine innovative solutions to turn waste polymer-based materials into valuable new products for more sectors.”
In-Plas is a recycler and processor of post-industrial scrap, pelleots, regrind, and by-products based in Cincinnati, Ohio. The company sells a broad range of recovered plastic products on the markets, and it operates at 3 sites located at key customer facilities.
The company works with a variety of thermoplastics and operates across multiple sectors including automotive, manufacturing and pharmaceuticals.
Close the Loop is an Australian end-to-end recycling solutions provider with locations across Australia, Europe, South Africa, and the US. The company specialises in creating products and packaging that includes recyclable and made-from recycled content, as well as collecting, sorting, reclaiming, and reusing resources that would otherwise end up in landfill.
The company recovers print consumables, eyewear, cosmetics and phone cases, and also reuses toner and post-consumer soft plastics for asphalt additive.