Close the Loop has acquired US recycling company In-Plas Recycling, strengthening its position in the recycling market. The purchase price is US$4 million, which includes up to US$500,000 of inventory. The company will pay majority of the amount when the acquisition is complete but will pay the remaining US$1 million in annual increments over four years.
Close the Loop expects the acquisition to be immediately earnings per share accretive on a pre and post-synergy pro-forma statutory FY23 basis. According to the company, this will add about US$1.1 million to CTL’s earnings before interest, taxes, depreciation and amortisation on an annualised basis.
CLG CEO Joe Foster said the acquisition significantly expands the company’s recycling scope and capabilities in North America and its presence on the plastics commodities market. “In-Plas Recycling not only gives us ownership of a US-based recycler and processer but provides strong sales growth, profitability and delivers a diverse suite of well-established and loyal clients,” Mr Foster said.