27. May 2016
Bioplastics manufacturer Solegear completes purchase of Ex-Tech Plastics’ bioplastics division
Acquisition bolsters Solegear's long-term growth strategy in the US
Vancouver, Canada-based Solegear Bioplastic Technologies Inc. has announced that it has formally closed the previously announced strategic acquisition of the bioplastics division of Ex-Tech Plastics, Inc. for consideration of $1.33 million in common shares of the Company at a deemed price of $0.20 per share. Ex-Tech, based in the Chicago, Illinois, area has been a leading manufacturer of extruded plastic sheets for over thirty years.
The acquisition is expected to provide Solegear with annualized revenues of an estimated US$2 million, which the company expects to use as a base for further growth and development. As consideration, Solegear has issued 6,650,000 common shares to Ex-Tech in respect of the transaction, all of which are subject to a 24-month hold period. The terms of the acquisition were first announced in a Solegear news release distributed on March 17, 2016.
“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.”
He added: “Increased U.S. visibility, an expanded customer base and solid revenues add greater leverage to our growth strategy to become the leader in innovative bioplastic products and packaging.”
Solegear’s proprietary bioplastic formulations, marketed under the brand names Polysole and Traverse, are designed to meet today’s social and corporate requirements to lower carbon emissions, reduce waste and remove toxicity typically associated with traditional petroleum-based plastics. Together with its partners, Solegear custom engineers, produces and distributes its high-performance bioplastics as resin, sheets and finished goods with some of the highest percentages of renewable, plant-based materials currently available in the industry.