ECO Plastics has been bought by investment company Aurelius, in a deal that sees the exit of Coca-Cola Enterprises (CCE) from its joint venture with the plastics recycler.
Aurelius says it will supply “highly specialised operational improvement capabilities and financial support” to ECO Plastics’ current operations, and focus on the long-term strategic development of the business.
The financial terms of the deal have not been disclosed.
As part of the agreement, CCE will terminate its involvement in Continuum Recycling, the closed-loop PET bottle recycling facility in which it had a 33% stake.
But CCE has said it will still source recycled PET from Eco Plastics as it has entered in a long-term supply agreement. “This new arrangement will ensure that CCE continues to use a minimum of 25% rPET in our plastic bottles in the UK, allowing us to deliver on our commitments to set the standard for sustainable packaging,” said a CCE spokesperson.
ECO Plastics’ founder and deputy chairman Jonathan Short, said: “This news is not just a vote of confidence in the future of ECO Plastics, but a vote of confidence in the promising future of the UK’s fast growing recycling sector.”
Tristan Nagler, managing director of Aurelius added: “For customers, suppliers and partners it will be business as usual. Aurelius has a strong track record in the industrials sector, providing both operational improvement as well as financial support to businesses. We are extremely excited about the future prospects of this business.”
Aurelius’ previous investments in this space include the acquisition of Wellman International, Europe’s largest recycler of PET bottles and a producer of polyester staple fibre products.