K.B. Recycling Industries signs agreement to acquire Spanish plastics manufacturing company
The Acquisition is an arm's length transaction that is expected to enable Alkemy to extend its activities and the sale of its portfolio of products into the European market.
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TORONTO and BEIT SHEAN — K.B. Recycling Industries Ltd., conducting business as Alkemy, a plastics recycling company, signed a share purchase agreement to acquire 100% of the shares of Plasticos Flome S.L.
Flome is a plastics manufacturing company operating in Valencia, Spain. Flome’s production site has seven operating lines of vacuum-forming manufacturing. Flome uses plastic sheets and boards as raw materials for manufacturing trays and packaging for automotive, agriculture, and beverage industries.
The Acquisition is an arm’s length transaction that is expected to enable Alkemy to extend its activities and the sale of its portfolio of products into the European market. The Acquisition will also expand Alkemy’s production through vertical integration. Flome will use Alkemy’s products as input materials while meeting the sustainability requirements of its customers. Using Alkemy’s foils and boards made of recycled plastic bags produced by Alkemy’s unique one-step process, Flome will be able to produce a large part of its preliminary products in an environmentally friendly way.
“The Acquisition is another step in our move towards global activity by expanding our value chain and bringing our innovative plastic recycling technology from Israel to Europe,” said Mr. Ami Krupik, Founder, Innovation and Technology and Interim Chief Executive Officer of Alkemy.
“We want to bring our technology and products to the European market, and Flome is the ideal partner. We expect this step will increase our growth and propel a fruitful collaboration on further product development. Flome’s research and development team has already forged a close working relationship with Alkemy, and Flome’s production facilities are ideally suited for short-cycles of product development and research and development prototyping”, Mr. Krupik added.
“The acquisition of Flome fits perfectly with Alkemy,” adds Yoav Horowitz, Chairman of the Board of Alkemy. “Flome will use Alkemy’s recycled plastic sheets for its current products while developing additional value-added products that can utilize Alkemy’s recycled plastic sheets.”
In consideration for the purchase of the issued and outstanding shares of Flome, Alkemy will pay the shareholders of Flome, a total amount of €1,800,000 (CAD 2,436,012).