Delta Plastics of the South, Little Rock, Ark., has acquired unspecified assets from plastic packaging maker Continental Products, Mexico, Mo.
According to Delta, the acquisition will assist its efforts to expand its program of collecting plastic scrap from the agricultural industry. The company estimates that it reclaims more than 100 million pounds of plastic scrap each year.
In completing the deal, Delta Plastics says Continental’s assets will position Delta as a top manufacturer of flexible irrigation tubing for agricultural applications. Delta makes extruded polyethylene lay-flat pipe used by farmers to irrigate fields.
“This transaction is highly accretive to Delta Plastics and will enable us to better serve the growing needs of our customer base as we continue to make significant investments in our production, collection and recycling processes,” says Sean Whiteley, Delta Plastics’ CEO.
BlackArch Partners, Charlotte, N.C., which is advising Delta Plastics on acquisition and growth opportunities, says Delta also obtained financing from Ohio-based Fifth Third Bank to allow it to expand its business. “BlackArch was invaluable in helping us understand and evaluate the various strategic options available to us and in managing the many aspects of this acquisition,” says Whiteley.