A Maryland-based equity group is helping a Texas-based plastics recycling company seek equity funding.
Three Twenty-One Capital Partners, Glenwood, Maryland, says it has been “exclusively retained by a plastic recycling operation” in Texas “to secure an equity partner or buyer for the recapitalization and future growth of the company.”
The company seeking investors processes postconsumer and postindustrial thermoplastic scrap materials. “The recycled resins are used in high percentages with virgin resin, reducing customers’ material cost and environmental impact,” Three Twenty-One Capital Partners says.
The plant the recycling company operates has two pelletizing lines and one wash line to sort, shred, wash, grind and pelletize several types of plastic scrap including:
- ABS (acrylonitrile butadiene styrene);
- PP (polypropylene);
- PBT (polybutylene terephthalate);
- HMW-HDPE (high-molecular-weight high-density polyethylene);
- HIPS (high-impact polystyrene);
- PET (polyethylene terephthalate)
- nylon;
- GPPS (general purpose polystyrene);
- PC (polycarbonate);
- LDPE (low-density polyethylene) and HDPE (high-density polyethylene); and
- TPO (thermoplastic poly-olefin).|
According to Three Twenty-One Capital, the recycling company was founded in 2013 and “has relied mainly on friends and family investments, in the form of subordinated debt, as the business scaled operations.” In 2014 the company’s revenue grew 237 percent to $4.32 million. It finished 2014 with a handful of profitable months, “but the lack of adequate working capital continues to constrain profitability and growth,” the equity firm says.
The company plans to use funds from recapitalization “to make better and more opportunistic purchases of postconsumer and postindustrial plastics.” The company also has plans to add a new wash line with an anticipated $150,000 per month incremental gross profit and 12-month payback on investment and is considering purchasing the building it currently leases, according to Three Twenty-One Capital.
The plant as currently configured is capable of generating f $8.5 million in revenue, which grows to $12 million with the addition of the new wash line. The 65,000-square-foot facility is leased with “a favorable purchase option,” according to Three Twenty-One Capital.
Those seeking more information about the Texas plastics recycling operation can email Three Twenty-One Capital at CA@321capital.com.
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