- Close the Loop (CLG) acquires US recycling company, In-Plas Recycling, to strengthen its position in the recycling market
- The company is paying US$4 million (A$5.74 million) for the acquisition and expects it will be immediately earnings per share accretive
- Close the Loop CEO Joe Foster says the acquisition significantly expands the company’s recycling scope and capabilities in North America
- The acquisition is scheduled to be finalised on January 31
- Shares in Close the Loop are trading steady at 38.5 cents at 11:07 am AEDT
Close the Loop (CLG) has acquired US recycling company In-Plas Recycling, strengthening its position in the recycling market.
The purchase price is US$4 million (A$5.74 million), which includes up to US$500,000 of inventory. The company will pay majority of the amount when the acquisition is complete but will pay the remaining US$1 million in annual increments over four years.
Close the Loop expects the acquisition to be immediately earnings per share accretive on a pre and post-synergy pro-forma statutory FY23 basis.
According to the company, this will add about US$1.1 million to CTL’s earnings before interest, taxes, depreciation and amortisation on an annualised basis.
CLG CEO Joe Foster said the acquisition significantly expands the company’s recycling scope and capabilities in North America and its presence on the plastics commodities market.
“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 loyal clients,” Mr Foster said.
“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.”
Overall, the acquisition delivers on Close the Loop’s strategy of growing within the recycling space in line with its core focus on the circular economy.
The company expects the acquisition will be finalised on January 31.
Shares in Close the Loop held steady at 38.5 cents at 11:07 am AEDT.