CCC says acquisitions in recycling give all firms more growth opportunities

By Jim Johnson
Senior Staff Reporter

Published: June 20, 2014 1:52 pm ET
Updated: June 20, 2014 2:03 pm ET

Related to this story

Topics Mergers & Acquisitions, Sustainability, Beverage, Blow Molding, Recycling

Growth, for Consolidated Container Co., is a two-way street.

Atlanta-based CCC obviously sees its first acquisition in the recycled plastic processing business as a way to help the company expand.

But the deal that brings sister companies Envision Plastics Industries LLC and Ecoplast Corp. to the rigid plastic packaging company also will help those firms as well.

CCC emerged as the winner last week for both Envision and Ecoplast following an auction run by an investment banker hired by previous owners Massoud Rad and Parham Yedidsion, according to Richard Sehring, chief financial officer of CCC.

“CCC views sustainability and recycling as a megatrend in our industry that will only increase with time. Customers, consumers and retailers are all looking for greater recycled content in products, and this strategic investment allows CCC to increase access to such products,” Sehring said in an email interview.

“CCC is in a position to help accelerate the growth of Envision and Ecoplast by leveraging its market presence,” he said.

With more than 50 container-making sites around the country, CCC is no stranger to using recycled content in new products.

But this is the first time the company will actually process its own recycled plastics.

“CCC is and has been a customer of Envision/Ecoplast for some time. However, a majority of Envision/Ecoplast’s business is with other customers.  We intend to build off of these great relationships and build new customer relationships, while also driving growth through CCC’s customer base,” Sehring said.

Acquiring Envision and Ecoplast — the terms were not revealed — gives CCC a bi-coastal presence in the recycling business. The deal adds two locations in Reidsville, N.C., and Chino, Calif., for Envision Plastics, an HDPE recycler. CCC is owned by private equity firm Bain Capital.

Ecoplast, which calls itself California’s oldest thermoplastics recycler and customer compounder, is located in Fontana. That company handles a variety of resins, including polystyrene, ABS, polypropylene, and low, linear low and high density polyethylene.

When asked about bolting on additional plastics recycling companies in the future, this is what Sehring had to say:

“We view Envision and Ecoplast as a platform for growth for CCC.  It is a new capability that we intend to grow. Our first priority is to accelerate growth within Envision and Ecoplast’s existing facilities. We want to ensure that the business continues its upward trajectory that has been occurring.  However, as with all opportunities, if something comes to market that could potentially be a strategic fit we would evaluate it.”

In purchasing both Ecoplast and Envision, CCC gains two of the larger plastics recyclers in the country representing nearly 200 million pounds of reprocessed material annually. Envision is the larger of the companies with 145 million pounds reprocessed, according to Plastics News’ ranking. That’s good for No. 14 on the annual list. Ecoplast checks in with 54 million pounds of reprocessed plastics, good for No. 54 on the annual list.

While the companies are now under new ownership, they will each operate as a stand-alone business, the new owners said. Scott Booth, who has been chief operating officer at Envision Plastics since 2008, will lead the firms along with the existing management team.

“Both Envision and Ecoplast will continue to operate as they have historically as Envision and Ecoplast. They will operate as a stand-alone division utilizing their existing company names, websites, etc. and under the existing management team,” Sehring said.

That’s important because while CCC has been a customer for several years, the majority of the acquired firms’ business lies elsewhere.

“The staff at Envision and Ecoplast is tremendous. They are experienced and knowledgeable in the industry and fit in well with CCC’s culture of integrity, quality and service,” the CFO said. “CCC has been interested in participating in recycling for some time, and the opportunity to acquire these leading companies in the marketplace, along with their proprietary technology, was ideal.”


Comments

CCC says acquisitions in recycling give all firms more growth opportunities

By Jim Johnson
Senior Staff Reporter

Published: June 20, 2014 1:52 pm ET
Updated: June 20, 2014 2:03 pm ET

Post Your Comments


Back to story


More stories

Image

Canadian mold maker Thibault adding to new operation in Mexico

August 27, 2014 3:19 pm ET

Canadian mold maker I Thibault Inc has purchased an established Mexican company, Tecnimoldes SA de CV, for a seven-figure-dollar-sum and renamed it...    More

Image

Sony entering recycled PC market

August 27, 2014 11:08 am ET

Consumer electronics giant Sony Corp. is getting into a sideline of selling recycled resins.    More

Image

PolyOne expands special effects offerings for PET

August 27, 2014 11:03 am ET

PolyOne Corp. has added a new line of shimmer and frost-effect colorants to its InVisio line of color services and solutions.    More

Image

Canadian thermoformer ICI gets new financial backing

August 26, 2014 3:11 pm ET

Innovative Composites International Inc. (ICI) will get a $1.5 million infusion in the form of a loan and equity funding to cover a corporate...    More

Image

Megadyne buying Belt Corp. of America

August 26, 2014 10:35 am ET

In a move aimed at building its specialty belting manufacturing and fabrication operations, Jason Industrial Inc. — Megadyne SpA's wholly owned ...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events