The former head of a national drug store chain has bought Plastic Recycling Technology Inc. in Versailles, Ohio, and plans to build or acquire a second facility for the scrap recycler.
David Kriegel, former chairman and chief executive officer of Drug Emporium Inc., said he paid between $3.5 million and $4 million to become PRT's sole owner and chairman.
Kriegel, who led Drug Emporium to become a national chain of 131 stores until it declared bankruptcy last year and was bought by another drug chain, said in a Nov. 15 telephone interview that he wants to grow PRT quickly. He took over the company Oct. 31.
``We see this as the opportunity to roll that platform out to a multifacility operation,'' he said.
``The used regrind market is a buyer's market. While prices are suppressed, we'll probably be aggressive acquirers.''
Kriegel takes over from President and CEO Mark Phlipot, who is stepping down to become a consultant to the company. Steve Larger, vice president of sales, will become the CEO; he had been part owner.
``For Mike and I as individuals, the company was at a bit of a standstill,'' Larger said. ``We needed equity to grow the business. Dave's also bringing the higher-end management that will get us to the next level.''
Kriegel said he became familiar with the plastics industry from his investment in blow molder Midwest Plastics in Lima, Ohio. He also has ownership interest in two screw machine shops, Acme Machine Automatics in Ottoville, Ohio, and Drudge Screw Products in Warsaw, Ind.
PRT has $5 million in annual sales and about 35 employees, primarily recycling polyethylene film scrap for use in diverse markets, including film, pipe and plastic lumber. It processes about 40 million pounds of plastic, including polypropylene and polystyrene. PRT once served as a showcase plant for Davis-Standard Corp.'s Scrapper extrusion system.
Kriegel said he wants the company to have a second recycling plant within a year, but has not settled on a location, other than saying it will be at least 200 miles from its current plant. The company also is eyeing unspecified opportunities in Mexico and Canada, Larger said.
Kriegel had been chairman and CEO of Drug Emporium, based in Powell, Ohio, until it declared bankruptcy and was bought by Minnesota-based Snyder Drug Stores Inc., for $21 million last year.