U.S. Plastic Lumber Corp. said it will sell its environmental services and recycling division to an investment group for about $50 million in cash and preferred stock and use the proceeds to reduce debt.
The company also has signed a forbearance agreement with its senior lenders in connection with its senior credit facility.
U.S. Plastic said its board approved the sale of the unit, Clean Earth Inc., to New CEI Inc. for $45 million in cash and $5 million in preferred stock. New CEI, recently formed by New York investment group Founders Equity, will also take on $5.5 million of Clean Earth's debt and will issue warrants for the purchase 4 percent of New CEI. U.S. Plastic will retain certain assets of CEI with a current book value of about $4.5 million.
The purchase price is subject to adjustment primarily based upon the amount of working capital and debt assumed at closing, U.S. Plastic said. The closing of the deal is expected by the end of next month. It is subject to government, shareholder and lender approval and other conditions.Latest from Recycling Today
- AISI, Aluminum Association cite USMCA triangular trading concerns
- Nucor names new president
- DOE rare earths funding is open to recyclers
- Design for Recycling Resolution introduced
- PetStar PET recycling plant expands
- Iron Bull addresses scrap handling needs with custom hoppers
- REgroup, CP Group to build advanced MRF in Nova Scotia
- Oregon county expands options for hard-to-recycling items
