Vancouver, B.C.-based bioplastic manufacturer Solegear Bioplastic Technologies Inc. has completed it purchase of the bioplastics division of extruded plastic sheet maker Ex-Tech Plastics Inc., which is headquartered in Richmond, Ill.
The purchase price is about $1.3 million in stock.
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 management support services to Solegear.
According to the news release announcing the purchase, the deal is expected to bring Solegear annual revenues of around $2 million.
“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.”
The Ex-Tech team will continue to market and sell bioplastics through the Solegear brand, and both firms will continue to operate as strategic partners for new bioplastics development, processing and commercialization.