Bioplastics maker Solegear Bioplastic Technologies Inc. has bought the bioplastics division of sheet extrusion firm Ex-Tech Plastics Inc. for about $1.3 million in stock.
The business being bought by Vancouver-based Solegear has annual sales of around $2 million. Richmond, Ill.-based Ex-Tech also will be Solegear's exclusive plastics extrusion service provider in North America. Solegear will be Ex-Tech's exclusive supplier of bio-based materials and additives.
The two firms announced the deal in a March 17 news release. “We believe the amalgamation of Solegear and Ex-Tech's bioplastic expertise…under the Solegear brand will further accelerate the commercialization of thermoformed bioplastic packaging in food and non-food applications,” Solegear CEO Paul Antoniadis said in the release.
“This transaction marks a significant milestone in Solegear's strategy to grow its business through targeted acquisitions, joint ventures and organic sales,” he added.
“In completing a strategic review it became clear there was greater value to be achieved by combining our bioplastic business with Solegear,” Ex-Tech president William Riesbeck said in the release.
In early 2015, Solegear went public on Toronto's TSX Venture stock exchange and raised C$4.2 million (US$3.36 million) in financing. The funds were raised through the sale of equity to undisclosed financial investors.
Solegear has been developing polylactic acid-based bioplastics modified with what it terms as green additives to improve properties. In addition to Ex-Tech, Solegear is working with two other U.S. companies to produce and sell its polymers and packaging made from them.
Solegear's main offering is Polysole, a recyclable and compostable material made from renewable resources. It also supplies Traverse, a recyclable bioplastic for demanding applications in rigid consumer packaging and durable goods. The firm's technology development partly stems from work it did with the National Research Council of Canada in Ottawa beginning in 2012.
