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Highlights
- Close the Loop has completed the acquisition of thermal paper supplier Alliance Paper Pty Ltd
- The leading company in the sustainable and circular economy has won gold at the Packing Innovation and Design Awards
- Close the Loop has achieved the mark of recycling 50 million cartridges under the Cartridges 4 Planet Ark program
Close the Loop Limited (ASX:CLG), a leading market participant in the space of sustainability and the circular economy, has announced the acquisition of Alliance Paper. The latter is a major supplier of thermal paper and associated goods in the Australian market.
Source: © 2022 Kalkine Media®
The deal
Close the Loop, an end-to-end solutions provider from design and manufacturing, through to the collection and recycling of products, has closed the deal with a 100% purchase of Alliance Paper Pty Ltd at a price of AU$1. The price is payable at settlement, which is due next month. The other aspect of the deal covers investment of AU$4.5 million by Close the Loop in the working capital of Alliance Paper. This capital infusion is to be made on August 31, the settlement date, and beyond.
Advantages
Alliance is into providing thermal receipt rolls and related items to the leading supermarkets in the country, besides major brands, including McDonald’s, KFC and Nike. Alliance’s BPA and phenol-free paper rolls are recyclable. It has also achieved success in the development of recyclable coffee cups and other disposable items.
Source: © 2022 Kalkine Media®
This deal aligns well with the current operations of Close the Loop and also with the company’s revenue and profitability in the future. Alliance’s acquisition will help Close the Loop to move toward a strong position with respect to sustainable paper products. The company will now be better placed to develop more innovative products, which can become a sustainable and feasible substitute for conventional plastic-dominated packaging.
Alliance’s expected revenue growth, from AU$11.7 million in FY22 to AU$19.7 million in FY23, and EBITDA of AU$2.4 million in FY23 as against a loss in FY22, is set to boost Close the Loop’s financials.
Trial of recycling pilot
The other major development concerning Close the Loop operations is the trial of the National Cosmetics Collection Scheme regarding new methods of recycling cosmetics with a view to trim down thousands of tonnes of packaging, which ends up in landfills across Australia. This trial is being conducted in alliance with Myer. Accord, the industry body, is providing guidance. Close the Loop is processing packaging retrieved from Myer’s collection bins.
Close the Loop wins Gold
At the 2022 Packing Innovation and Design Awards (PIDA), Close the Loop earned appreciation for its contribution to the circular economy. The company bagged gold in the Sustainability Packaging Design of the Year under the reuse/resell category.
One of the products, created by Close the Loop’s OF Pack business for refillable and eco-certified cleaning company Koh, registered a win in the innovative packaging category. The product, made up of 100% mono-polymer PE, can be disposed of in kerbside dustbins.
50 million cartridges recycled
Close the Loop took pride in announcing that the company has attained the desired milestone of recycling 50 million printer cartridges under the Cartridges 4 Planet Ark drive. The program began in 2003 and witnessed the recycling of old cartridges and their use in the production of new items, including cartridges and inks.
Group CEO’s words
Group CEO Joe Foster took note of all the above developments and anticipated lasting benefits that would accrue to Close the Loop and the wider sustainable and circular economy.
