The plastics recycling company Advanced Environmental Recycling Technology (AERT), headquartered in Springdale, Arkansas, has reached an agreement to be acquired by Oldcastle Architectural Inc., Atlanta, for $17 million. Oldcastle is a producer of concrete products that targets the commercial masonry, landscaping and consumer do-it-yourself sector.
The acquisition of AERT enables Oldcastle Architectural to enter the composite decking sector. AERT brands include ChoiceDek and MoistureShield.
Tim Morrison, AERT CEO and chairman, says, "This is a compelling transaction that maximizes shareholder value. We believe this is the right partnership to meet the evolving needs of our customers while furthering our ability to create best-in-class products. We are excited by the opportunities for AERT under Oldcastle Architectural's ownership, and we look forward to being a part of this dynamic new chapter."
AERT has pioneered the use of recycled polyethylene plastic to make composite building materials. AERT converts reclaimed plastic and wood fiber waste into outdoor decking systems, fence systems and door and window components. The company operates manufacturing facilities in Springdale and Lowell, Arkansas, and in Watts, Oklahoma.
In related news, AERT reports net sales for the year ended Dec. 31, 2016, of $85.3 million, up 3.2 percent from $82.7 million for the previous year. Net sales for the fourth quarter were $18.7 million, up $1.6 million, or 9.4 percent, from $17.1 million in the fourth quarter of 2015.