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

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Alex Brands buys iconic Shrinky Dinks toys

December 19, 2014 3:15 pm ET

First Slinky, now Shrinky Dinks. What will toy and games investment firm Alex Brands buy next?    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS...    More

Image

BASF to sell its share in Singapore JV

December 19, 2014 8:37 am ET

BASF SE has announced that it has reached an agreement for it to sell its share in the 50-50 joint venture ELLBA Eastern, at Jurong Island, Singapore ...    More

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events