Shanghai Pret Composites Co. Ltd., a Chinese company, announced on Tuesday that it will acquire Wellman Plastics Recycling LLC in Johnsonville in an all-cash deal valued at more than $70 million.
The purchase includes all shares of Wellman Engineering Resins and DC Foam Recycle Inc.
Pret’s announcement said Wellman’s total assets were valued at $73.6 million, including $14.8 million in net assets, as of Sept. 27. The company’s sales reached $162 million in 2012, climbed to $164 million in 2013, and were $124 million for the first three quarters of 2014. Net profit was $7.6 million in 2013 and $6.1 million for the first three quarters of 2014.
Pret is a growing maker of composite materials for the automotive industry. The purchase is an effort to secure a presence in the auto compounding market in the U.S.
Never miss a local story.
“This move will be the company’s ‘starting point’ with continued efforts to expand globally,” Pret said.
Wellman’s Engineering Resins division produces nylon, polyester and polypropylene resin products for the automotive industry made from 100 percent post-consumer recycled materials.
Wellman Plastics Recycling was formed in 2008 following the bankruptcy and eventual dissolution of Wellman Inc., which had been one of the world's largest recyclers of plastic resin. Wellman Inc. employed more than 2,000 in its heyday.
The plant in Johnsonville spans 2 million square feet.