Close the Loop Group (ASX:CLG) has acquired In-Plas Recycling, a US recycling company headquartered in Ohio, for US$4 million to expand its plastics secondary market capabilities.
In a statement on the ASX, Close the Loop said the acquisition of the recycler and processor of post-industrial scrap, pellets, regrind and by-products will expand both companies’ service in recycled plastics processing.
In-Plas works with a variety of thermoplastics and operates across multiple sectors including automotive, manufacturing and pharmaceutical.
Close the Loop CEO Joe Foster said the acquisition further strengthens the company’s position in the lucrative recycling market in North America and is highly complementary of its existing recycling offering. He also said it expands its services into recycled plastics processing and the automotive sector.
“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,” he said.
“In-Plas Recycling not only gives us ownership of a US-based recycler and processer but provides strong sales growth, profitability and delivers a diverse suite of well-established and local 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’ complimentary services mean we are able to combine innovative solutions to turn waste polymer-based materials into valuable new products for more sectors.”