An electrical products maker is divesting plastics recycling operations acquired as part of a larger acquisition a few years ago.
Atkore Inc., based in Harvey, Ill., is selling Northwest Polymers, a business that does both post-industrial and post-commercial plastics recycling at locations in Molalla and Aurora, Ore., the company said Feb. 19.
Azek Co. Inc., a maker of exterior products including decking, railing and trim with high recycled content is buying the operations with an eye on continued expansion of the company's PVC recycling business.
"The acquisition of Northwest Polymers, combined with our recently announced advanced recycling acquisition in Indiana, positions Azek for the next phase of our recycling journey, expanding our geographic reach and ensuring a consistent and cost-efficient supply chain," Azek CEO Jesse Singh said in a statement.
Northwest Polymers started with a focus on recycling vinyl, but over time expanded to include a wide variety of resins, according to the company's website. The company calls itself the largest recycler of vinyl in the Western United States. Atkore, meanwhile, calls itself the largest PVC recycler in the country.
Northwest Polymers processes more than 40 million pounds of recycled plastic each year and has more than 60 employees, the website said.
Ultimately, it was a business Atkore no longer wanted.
"Atkore continually reviews the strategic direction of all aspects of our business, including potential acquisitions and divestitures. The sale of Northwest Polymers aligns with our disciplined approach to capital allocation and our commitment to drive value creation for our shareholders," CEO Bill Waltz said in a statement.
Northwest Polymers came to Atkore in 2022 as part of a larger deal.
At the time, an Atkore official said the business strengthened the company's product portfolio and provided a high density polyethylene conduit manufacturing presence in the Northwest. "Equally important, the acquisition of Northwest Polymers supports Atkore's environment, social and governance commitment to address sustainability throughout the supply chain."
The company, in announcing the divestiture had this to say:
"In 2022, the company acquired two separate but related Oregon-based companies doing business as Northwest Polymers and Cascade Poly Pipe & Conduit, a manufacturer specializing in smooth-wall HDPE [high density polyethylene] conduit. The sale of Northwest Polymers does not impact Atkore's continued operations for the HDPE product, which primarily serves telecommunications, utility and datacom markets," Aktore said.
For Azek, acquiring Northwest Polymers makes both geographic and economic sense, that company said.
"Northwest Polymers has built a strong reputation for sourcing, processing, and supplying high-quality recycled plastic materials to various industries," Singh said. "Located in close proximity to our Boise manufacturing facility, this acquisition will help us strengthen our material supply chain in the western United States, improve cost efficiencies, and enhance our ability to meet the growing demand for beautiful, low-maintenance and sustainable outdoor living solutions."
Azek recycles more than 520 million pounds of scrap and waste plastics each year and calls itself the No. 1 vertically integrated PVC recycler in the country.