Acquiry : Recycling company PreZero US acquires Roplast Industries

Southern California recycling company PreZero US completed a transaction to acquire Roplast Industries Inc., ab sustainable polyethylene film and bag manufacturer based in California.bThe Roplast acquisition is the next step in PreZero’s growth strategy: In 2020, PreZero announced investments totaling over $100 million in plastics recycling facilities.

These facilities are now operational and can be found in Jurupa Valley, CA and Westminster, SC. They are processing film and mixed rigid plastic bales into LDPE, PP & HDPE resins. Total planned processing capacity is estimated over 160 million pounds per year. The company entered the US market in 2018 and is an arm of PreZero International which is also a major player in the European recycling and disposal market.

Founded in 1989, Roplast is a manufacturer of polyethylene film and bags. Over three decades, Roplast has shown a commitment to exploring sustainable solutions for these products in all its endeavors. PreZero and Roplast come together just as California’s SB270 legislation will be requiring more recycled content in bags and film. Current processing capacity of Roplast is 30 million pounds per year. The film and bags are sold across the US in a variety of markets.

PreZero has the means to supply resins that can serve as the PCR feedstock for the Roplast production line. These efforts point to the primary business goal of PreZero US which is vertically integrating to deliver closed loop solutions that support the circular economy.

Within 24 months of the acquisition, PreZero has the goal of supplying up to 15 million pounds of LDPE per year in the form of PCR content for film and bags. By bringing sourcing raw material, pre-production, processing, and finally manufacturing under one roof, the company is continuing its work to develop the domestic infrastructure for recycling.

Financial terms of the deal were not disclosed.