NexCycle Inc. has purchased two Canadian plastics recyclers that company executives hope will increase sales by $45 million this year.
The Irving, Texas-based recovery services company acquired Polymont Plastics Corp. of Red Deer, Alberta, and Nu-Plast Polymers International, of Brampton, Ontario. Both companies operate separately, but shared a common owner before the purchase, said Alex Rankin, NexCycle president and chief executive officer.
While terms of the deal were not disclosed, Rankin expects the acquisition to increase the company's projected 1998 sales to $120 million, compared to $75 million in 1997.
The addition of Polymont and Nu-Plast expands NexCycle's plastics recycling operation, which had been limited to a small percentage of the 1 million tons of material the company processes annually, Rankin said.
NexCycle's plastics recycling division now will represent about one-third of the firm's total operations. About 40 percent of NexCycle's operations involve reclaiming recyclables, and the remainder involves glass recycling.
``This will be the core business around which we hope to build a much larger plastics operation,'' Rankin said in an interview with Waste News, a sister publication of Plastics News. ``This is the last leg of a plan that was developed four years ago when we launched the company.''
Keith Harradence, president of NexCycle's Canadian operations, could not be reached for comment.
NexCycle has collection and processing operations in California, Georgia, New York, Ontario and the United Kingdom. The company recently announced plans to make additional acquisitions before management issues an initial public offering, which Rankin expects to happen sometime by the end of the year.