Solegear Bioplastic Technologies Inc., the Vancouver, Canada-based manufacturer of plant-based plastics, has now formally closed the previously announced strategic acquisition of the bioplastics division of Ex-Tech Plastics, Inc., for $1.33 million in stock. Ex-Tech, based in Richmond, Illinois, area has been a leading manufacturer of extruded plastic sheets for over thirty years.
In addition, the companies have agreed that Solegear will be Ex-Tech’s exclusive supplier of bio-based materials and additives, while Ex-Tech will be Solegear’s exclusive plastics extrusion service provider in North America. Also, Ex-Tech has agreed to provide certain management support services to Solegear.
According to the news release announcing the purchase, the deal is expected said to bring Solegear annual revenues of around $2 million, providing a secure base for the further growth and development of the company.
“We are very pleased to complete on this highly synergistic and accretive acquisition,” said Paul Antoniadis, CEO of Solegear. “We believe the addition of Ex-Tech’s bioplastics division will further accelerate the commercialization of thermoformed bioplastic packaging in both food and non-food applications.”
Solegear’s proprietary bioplastics are all made from renewable plant resources using the principles of Green Chemistry. The company offers two distinct product lines, under the brand names Polysole and Traverse. Recyclable and compostable, Polysole is suitable for both rigid packaging and durable goods applications and currently is available in three grades. The 100% recyclable Traverse line of biocomposite materials is designed to meet the more challenging performance requirements for applications in rigid consumer packaging and durable goods. According to Antoniadis, the present deal will serve to increase the visibility of these products in the US, while at the same time providing an expanded customer base. And: “Solid revenues add greater leverage to our growth strategy to become the leader in innovative bioplastic products and packaging,” he said.
The Ex-Tech team will continue to market and sell bioplastics through the Solegear brand, making the transition seamless for Ex-Tech’s existing bioplastic customers and suppliers. Both firms will continue to operate as strategic partners for new bioplastics development, processing and commercialization.