Fast-growing recycler Sundance Products Inc. will have more opportunity for growth under new ownership.
Soin Capital has bought a majority interest in Sundance of Gainesville, Ga., for undisclosed terms. Soin's Composite Technologies Co. LLC affiliate uses recycled resins to make industrial and consumer products.
``Partnering with CTC provides us with the opportunity to vertically integrate our newly developed technologies for raw material processing, which ultimately will coincide with new product development,'' said Sundance President Larry Parmet in a news release.
Sundance had sales of $47 million for its fiscal year ended Oct. 30, and $52 million for calendar 2005. Sales should reach the $70 million level this year, the partners predicted in a news release. The company mainly recycles scrap polypropylene at its three recycling operations, two of which are in Gainesville with the other in nearby Buford, Ga.
Parmet said in a telephone interview that Sundance will expand production capacity.
Sundance uses proprietary technology for which it will seek patents covering materials preparation prior to recycling and for grinding. Parmet said his firm can process scrap previously sent to a landfill or exported - such as printed materials, nonwovens and PP commingled with PET - and turn it into pellets for use in automotive, housewares and other markets. Sundance compounds up to half a dozen waste streams together to come up with resins meeting a customer's specifications, Parmet said.
CTC of Dayton, Ohio, has not been a big customer for Sundance, but Parmet sees it as an important conduit to open up new markets for Sundance's pellets. Having processed 140 million pounds of PP and polyethylenes last year, Parmet predicts the company will handle some 200 million pounds this year.
CTC specializes in molding low-cost parts such as pallets on fast cycle times using scrap plastics. Its products include those incorporating long-glass-fiber reinforcement. Besides pallets for export markets where insect-infested wood is banned, CTC molds skateboard ramps, lawn carts and other consumer products.
Vishal Soin, a partner in Soin Capital, said in a telephone interview that synergy between CTC and Sundance is attractive, but ``the true driving factor for the deal is Sundance's sales growth.''
``Down the road there will be integration opportunities, but that wasn't the driving factor [for the purchase],'' he explained.
Soin Capital bought 70 percent of Sundance and the Parmet family holds the rest. Larry Parmet will stay on as president, and his wife, Lorenza Torres Parmet, will remain chief executive officer. Sundance will move its headquarters to Soin's Dayton office.
Sundance, established in 1989, is a Georgia minority company with Hispanic ownership. Lorenza Torres Parmet recently was named Business Woman of the Year for Georgia for her support of the Hispanic community. Until 2000 she was vice president of Asociacón Nacional de Industrias del Plastico A.C., or Anipac, Mexico's plastics industry trade association.
``Soin Capital was a viable option for us because it was essential to have a partner that understands the importance of minorities and appreciates the power of change and diversity,'' Larry Parmet said in a news release.
Soin Capital is the investment arm of Soin International LLC of Dayton. Soin International's main businesses include CTC, a residential land development business and a firm that manages private investments for the Soin family. Soin International also holds interests in several other nonplastics businesses.