German investment firm Aurelius – which swooped in to takeover ailing bottle recycler ECO Plastics in December 2014 – has made a second major purchase in the UK plastics recycling sector with the acquisition of Regain Polymers today (July 13).
Regain, which is based at a site in Allerton Bywater in West Yorkshire, operates a 50,000 tonnes-per-year capacity plastics compounding facility, where it processes rigid plastic polypropylene, polyethylene and high impact polystyrene.
The company has worked with RPC packaging and manufacturing giant AkzoNobel to produce a recycled material for use in the production of Dulux paint containers.
Regain began operating in 1991, operating under the title Linpac Recycling Ltd, but changed its name after having been acquired by London-based private equity firm Chamonix in January 2011. Regain reported turnover of £31m in 2014 and employs over 100 people.
Dirk Markus, chief executive of Aurelius Group commented: “We are very pleased to be announcing this deal which adds a further plastics recycling business to our portfolio. This positive partnership between Aurelius and Regain will create a strong commercial platform to support the company’s current operations and longer-term strategic development.
“Aurelius has a strong track record in supporting growth and value creation in its investee companies. This, combined with our focus on operational improvement and experience in the plastics space, positions the Aurelius team very well to support the organic growth of Regain going forward.”
Tristan Nagler, managing director of Aurelius UK, added: “Regain is a robust and innovative business which has successfully met the evolving requirements of its clients for increasingly complex, technical and cost-effective compounding solutions with guaranteed end product quality.
“We look forward to working with the Regain management team to further develop the company’s market leading offering to take advantage of the growing demand for recycled content in plastics applications from retailers, brand owners and automotive OEMs looking to reduce the carbon impact of packaging and products.”
Aurelius – which has offices in Munich, London, Stockholm and Madrid acquired Lincolnshire PET bottle reprocessor ECO Plastics in December after it had been placed into administration, having amassed debts totalling more than £14 million.
The company’s previous acquisitions in the plastics sector include Wellman International, described as Europe’s largest recycler of PET bottles as well as being a producer of Polyester staple fibre products.