DAK Americas to acquire Perpetual Recycling Solutions

DAK Americas LLC, Charlotte, North Carolina, has signed an asset purchase agreement with Perpetual Recycling Solutions LLC to acquire Perpetual’s polyethylene terephthalate (PET) recycling facility in Richmond, Indiana. The operation has an annual capacity of 100 million pounds per year (or about 45,000 tons per year) of recycled-content PET (rPET) flake.

DAK Americas serves as a subsidiary of Alpek S.A. de C.V., a business group of Alfa S.A.B. de C.V., which describes itself as one of Mexico’s largest global industrial companies.

According to a DAK Americas news release, the Perpetual facility will complement Alpek Polyester’s current food-grade PET recycling capacity in Pacheco, Argentina, as well as its fiber-grade recycling joint venture plant in Fayetteville, North Carolina.

“The acquisition of Perpetual and additional rPET capacity demonstrates Alpek Polyester’s ongoing commitment to sustainable product offerings to meet growing customer and consumer demand for rPET content,” says Jon McNaull, vice president of PET resins at DAK Americas. “The addition of this facility will allow us to expand our sustainability initiatives.”

The terms of the agreement have not been disclosed, and the acquisition is expected to be completed in the first quarter of 2019.

Greif to purchase Caraustar Industries

Greif Inc., a Delaware, Ohio-based producer of industrial packaging products and services, has entered into a definitive agreement to acquire Caraustar Industries Inc., a recycled paperboard and packaging company based in Austell, Georgia, from an affiliate of H.I.G. Capital. The cash transaction is valued at $1.8 billion and is expected to close during the first quarter of 2019, subject to customary closing conditions, including regulatory clearances, according to a news release issued by Greif.

Caraustar produces uncoated recycled paperboard (URB) and coated recycled paperboard (CRB) with a variety of applications that include tubes and cores and a mix of specialty products. The company’s footprint includes more than 80 operating facilities throughout the United States. Its business lines include Recycling Services, Mill Group (URB, CRB and specialty paperboard products), Industrial Products Group (tubes and cores, construction products, protective packaging, adhesives) and Consumer Packaging (folding cartons, setup boxes, packaging services).

“Caraustar offers an exceptional strategic and cultural fit for Greif,” says Greif President and CEO Pete Watson. “Its complementary paper packaging and recycled fiber operations will drive significant free cash flow growth, improve balance and profitability within the Greif portfolio and increase Greif’s exposure to U.S. industrial and consumer end markets. Most importantly, Greif and Caraustar share the same dedication to providing industry-leading service to all customers. I am excited to welcome our new colleagues to the Greif family and look forward to working closely with them.”

“We are excited about [the Dec. 20] announcement and what it means for Caraustar’s customers and employees,” says Caraustar President and CEO Mike Patton. “Greif is a well-known market leader with a strong manufacturing base. Our customers will benefit from Greif’s customer service focus and broad product offering, and our employees will join a culture with a strong legacy for service and quality.”

For the 12-month period ended Sept. 30, 2018, Caraustar generated $1.4 billion in sales and earnings before interest, taxes, depreciation and amortization (EBITDA) of $174 million. Based on trailing 12-month actual volume, adjusted for current market conditions as of that date, the company’s run-rate EBITDA is $220 million, Greif says in its news release.

The transaction significantly enhances Greif’s scale and scope in the industrial packaging market, creating significant competitive advantages and long-term operating leverage. The company says the transaction is immediately accretive to earnings and its financial profile. Greif also says it expects strategic flexibility for capital deployment going forward.

The addition of Caraustar is expected to increase Greif’s U.S. sales to roughly two-thirds of total consolidated sales from approximately half for fiscal 2018, according to the company. In addition, the percentage of Greif’s sales from paper packaging will expand to approximately half of total consolidated revenue compared with 23 percent for fiscal 2018.

Greif says it also expects the transaction to generate annual run-rate cost synergies of at least $45 million within 36 months of closing through a combination of back office savings, transportation optimization, recycled fiber savings, operational improvements and other procurement-related activities.

Greif describes Caraustar as a market leader in URB and CRB with an attractive mix of industrial and consumer customers. Additionally, Caraustar sells a variety of specialty paper products that Greif says will complement its portfolio.

The company also says that Caraustar’s business offers close operational adjacency to Greif’s current mill operations and that its operational philosophy aligns with Greif’s as well.

Wells Fargo Bank, National Association, Goldman Sachs Bank USA and JP Morgan Chase Bank N.A. each have provided financing commitments for the transaction.

Goldman Sachs & Co. LLC acted as the exclusive financial advisor to Greif for the transaction.

Bengal Machine acquires CM Recycling Equipment Solutions

Bengal Machine, Buffalo, New York, the parent company of Schutte-Buffalo Hammermill LLC, has acquired CM Recycling Equipment Solutions, Sarasota, Florida, a tire shredding equipment manufacturer and industrial shredding solutions provider.

According to a Bengal Machine news release, the asset purchase of CM fits with Bengal’s strategy to combine world-class brands in the size-reduction industry into a fully integrated manufacturer offering complete solutions across a wide range of industries and size-reduction applications. CM Shredder will offer two brands to the primary and secondary shredding markets: CM Tire Shredders and CM Industrial Shredders. Bengal Machine reports that Schutte-Buffalo will become Schutte Hammermill and will focus on its hammer mill, crusher and lump-breaker product lines.

“With the acquisition of the Columbus McKinnon shredder business and the combination with our Schutte Hammermill product lines, now under the Bengal Machine banner, our company has moved into an ideal position to become the size-reduction equipment supplier for nearly every market need, regardless of the products or materials our customers are working with,” says Martin Berardi, CEO of Bengal Machine. “The purchase represents a strategic opportunity to add significantly to our worldwide installation base and grow our capacity and scale.”

Charles Astafan, general manager of CM Shredder, adds, “CM Shredder is really looking forward to a very positive relationship together with another leader in size-reduction equipment manufacture. Both companies bring a long history of customer service and excellence we are confident will continue.”

Okada and Rotar form North American alliance

Okada America Inc., Clackamas, Oregon, and Rotar International BV, based in the Netherlands, have announced a joint alliance of their demolition attachment businesses in the North American marketplace effective Jan. 1.

The alliance was created to offer customers more options in demolition, recycling and scrap yard attachments, Okada says in a news release. The statement adds that the joint alliance will strengthen the companies’ distributor networks and their ability to service existing and future customers.

Okada will provide sales, service, parts and warranty support for the Rotar products in addition to continuing to support existing Okada products in the field.

“We are very pleased to team up with Rotar International BV and to be adding Rotar products to complement our existing line of attachments,” says Okada President Jim Brown. “Rotar’s demolition, recycling, scrap handling and mobile shear products are field-proven for performance and reliability, and they are backed by Rotar’s years of quality manufacturing experience.”

Through more than 200 U.S. and Canadian distributors, Okada offers a complete line of excavator, loader/backhoe, skid-steer, track, compact utility loader and mini-excavator mounted attachments, including breakers (TOP Series and ORV Series), crushers, demolition shears, pulverizers, processors, grapples, compactors (OAC Series) and screening buckets, along with a pedestal rock-breaker boom system line.

Rotar makes products for the demolition, recycling and scrap markets and supplies hydraulic attachments for those industries.

Fuchs expands North American dealer network

Fuchs, a Terex brand with North American headquarters in Louisville, Kentucky, has announced the appointment of Hoffman Equipment, headquartered in Piscataway, New Jersey, as the authorized Fuchs distributor for 11 counties in southern New York, the entire state of New Jersey and eastern Pennsylvania for the full line of Fuchs material handlers.

Tim Watters, Hoffman Equipment president, says, “We are so excited to be named the Fuchs’ dealer for southern New York, New Jersey and eastern Pennsylvania. Fuchs is the leading supplier of material handling equipment in the industry, and we are proud to be part of their team.”

He adds, “Hoffman’s success depends on our continued commitment to product support, and we look forward to grow[ing] Fuchs’ share of this dynamic market.”

Hoffman will sell and service the Fuchs brand out of all of its facilities.

“I am delighted the Fuchs team has secured Hoffman as a Fuchs distributor,” says Tim Gerbus, Fuchs North American sales director. “Hoffman has been providing best-in-class service in New Jersey, southern New York and eastern PA since 1920. They provide complete customer service to all their market segments and have extensive knowledge and experience in the material handling industry.”

In addition to sales and rental opportunities, Hoffman Equipment will provide parts, service and warranty support for Fuchs material handlers using factory-trained technicians.

Wendt sells chopping line to GLE Scrap Metal

Wendt Corp., Buffalo, New York, has announced the sale of a high-volume MTB wire chopping line to GLE Scrap Metal. The purchase of the MTB line represents part of an overall company strategy by GLE to broaden its presence in the scrap industry, according to a Wendt Corp. news release.

“The scrap market is constantly changing,” says Dave Siejka, Wendt’s MTB business development manager. “By adding wire chopping capabilities to their operations, an already successful company like GLE takes its destiny into its own hands by adding the flexibility to meet the quality needs of their expanded customer market.”

A first-generation, family-owned business, GLE Scrap Metal found its roots in electronics recycling in 1999. The company acquired its first nonferrous metals facility in 2004 and has grown to three ferrous and nonferrous facilities in Florida and Michigan with more than 150 employees.

A newly acquired facility in Ocoee, Florida, will house the wire chopping installation. GLE operates balers and collects scrap metal from the public and from industrial accounts and scrap dealers in the U.S., Wendt says.

GLE’s automated wire chopping line includes the “latest models of prechoppers, granulators, air density tables and vibratory screens” that MTB offers, Wendt says. The line can process a variety of materials, including aluminum cables, copper cables and shredder wire.

“After our visit to France and processing our materials through the MTB processing facility, we were not only impressed with the equipment’s capabilities, but we [also] felt that the personnel from both Wendt and MTB had similar core values and vision to that of ours at GLE,” says Daniel Zack, GLE CEO.

The company plans to start by processing copper wire and cables with the equipment, which is operational at the site. GLE plans to sell the upgraded materials package domestically and overseas, Wendt says.

In memoriam: Leland Emerson Boren

Leland Emerson Boren, an industrialist, farmer and philanthropist, died Nov. 23, 2018, at the age of 95. Boren served as chairman, president and CEO of Avis Industrial Corp., Upland, Indiana, until his death. Avis owns American Baler, Bellevue, Ohio, and Harris, Cordele, Georgia, among other companies.

According to the obituary posted at the website of Anderson, Indiana-based Rozelle Johnson Funeral Service, Boren was born in Owensville, Indiana, to Doyle and Esther Boren April 2, 1923. Prior to graduating high school, he began working as a heat treat specialist with the Nicholson File Co. and remained there until 1945, when he began working for Pierce Governor Co. Inc. He eventually became president of the company in 1958.

Boren became the president and a director of Avis Industrial in 1969. He was elected the company’s chairman of the board in 1983. In addition to his roles as chairman, president and CEO of Avis, Boren served as president of PHD Inc., with locations Fort Wayne and Huntington, Indiana, since 2010.

Throughout his career, Boren has served on the boards of various manufacturing companies and played an active role in the growth of the banking industry in Indiana, his obituary notes.

Boren received honorary doctorates from four universities (Taylor, Anderson, Indiana Wesleyan and Ball State). He is the recipient of four Sagamores of the Wabash, the highest honor the governor of Indiana bestows upon a citizen of the state.

He is survived by his sons, Lael (Polly) Boren of Upland and Landrew (Lana) Boren of Hughes Springs, Texas; daughter, Lori Meyers of Marion; his sister, Lucille Ashby of Anderson; nephews, David Ashby of Anderson and Dennis Ashby of Glen Ellen, Illinois; and grandchildren, Andrew Bowser, Samy Bowser, Kenny Meyers, Karan Meyers, Katelyn Boren and Luke Boren.

He was preceded in death by his wife of 52 years, LaRita Rae (Gibbs) Boren, and his brother-in-law, Duane Gibbs.

Eriez announces management, director promotions

Eriez, Erie, Pennsylvania, has promoted Tim Gland to the newly created position of vice president and general manager and Jaisen Kohmuench to the newly created position of senior director of Asia-Pacific operations and strategies.

Gland has been with the company since 2014, serving mostly as director of Erie operations. As vice president and general manager, he will continue to serve as a member of the company’s corporate executive team while expanding his leadership role as he oversees all Eriez U.S. operations.

“In his time at Eriez, Tim has been instrumental in improving production, quality and processes throughout the company, especially in terms of our growing Xtreme metal detection and Quick Ship programs,” Tim Shuttleworth, CEO of Eriez, says.

Before joining Eriez, Gland worked for Lord Corp. as director of chemical and mechanical operations. He was responsible for multiple manufacturing facilities in North America. He graduated from Purdue University and went on to obtain a master’s degree in business administration from The Pennsylvania State University.

In his new role as senior director of Asia-Pacific operations and strategies, Kohmuench, who has been with Eriez for nearly two decades, will serve as part of the company’s corporate executive team.

He has held numerous titles during his tenure with Eriez. He most recently concluded a three-year expatriate post as managing director of Eriez-Australia. As senior director of Asia-Pacific operations and strategy, Kohmuench’s expanded responsibilities include operational and strategic leadership for all Eriez Asia-Pacific subsidiaries, which consist of Australia, China and Japan.

“Jaisen’s extraordinary knowledge and expertise in Asia-Pacific markets, combined with his incredible drive and superior management skills, will be instrumental in taking our business to the next level in this area of the world,” says Lukas Guenthardt, executive vice president of strategy and development at Eriez. “We are confident that his contributions, both as senior director of Asia-Pacific operations and strategy and as a member of our corporate executive team, will have a tremendous positive impact on Eriez’s overall success.”

Kohmuench attended Virginia Polytechnic Institute and State University, where he earned a Bachelor of Science, a Master of Science and a doctorate in mining and minerals engineering. He also is a certified professional engineer.

During his career, Kohmuench has been the recipient of numerous awards and has written many technical papers, the company says. He recently co-chaired Eriez’s first Asian-Pacific Agents Conference (APAC) in Tianjin, China. This event brought together Eriez representatives and sales staff from Asia-Pacific markets to collaborate and strategize growth initiatives.

Eriez is a world authority in separation technologies. The company makes magnetic lift and separation, metal detection, fluid recycling, flotation, materials feeding, screening, conveying and controlling equipment.

Stadler America hires new territory sales manager

Stadler America, Colfax, North Carolina, has named Caylon Esposito as its new territory sales manager.

Esposito has more than 15 years of technical experience in industrial and commercial markets. His technical and engineering experience will focus on providing solutions for customers’ complex recycling needs, the company says.

“I am excited to join Stadler, which is a company that embodies my core values of putting the customer first, keeping my commitments and offering real innovative solutions,” Esposito says. “New systems and retrofits, regardless of the size and complexity, will be my focus.”

The company says Esposito’s skill set is a “perfect match” as Stadler aims to provide customers with total solutions. Prior to joining Stadler, he spent much of his career in the industrial equipment and systems integration arena, which will serve him well in the waste and recycling markets.

SERI appoints R2 director to lead standard development

SERI (Sustainable Electronics Recycling International), the Boulder, Colorado-based housing body for the Responsible Recycling Practices (R2) Standard for electronics recyclers, has named Sean DeVries as R2 director.

The organization says his responsibilities include working with the R2 Technical Advisory Committee, leading the R2 Standard development process, providing guidance for standard implementation and educating stakeholder groups.

Before joining SERI, DeVries served as the director of the Recycler Qualification Office, an organization established to audit and approve reuse and recycling organizations under the industry-led end-of-life electronics recycling programs across Canada. He also led the development process for the country’s Electronics Reuse and Refurbishing Program and the Recycler Qualification Program.