Bioplastic food service disposables producer Trellis Earth Products to pay US$2.6M for Cereplast assets, including production equipment, patents, inventory and trademarks, as part of Cereplast's Chapter 7 liquidation proceedings
NEW ALBANY, Indiana
July 10, 2014
– Oregon-based Trellis Earth Products Inc. has acquired an Indiana bioplastics manufacturer. The deal for Cereplast Inc. in Seymour is valued at $2.6 million. Cereplast relocated its headquarters from California last year as part of a global restructuring and had been in Chapter 7 bankruptcy.
Trellis Earth Products, Inc., a leading maker of bioplastic food service disposables, will pay $2.6 million for substantially all of Cereplast's assets including production equipment, patents, inventory, and trademarks, plus pay certain contract cure costs, as part of Cereplast's Chapter 7 liquidation proceedings. United States Bankruptcy Judge Basil H. Lorch III entered the sale order today for the assets of Cereplast, including its former Seymour bioplastics factory.
"We have long wanted to mark our products as 'Made in the U.S.A.'," said Mike Senzaki, Trellis Earth CEO. "The acquisition of this factory will enable to us to quickly become the pre-eminent American supplier of bioplastic food service disposables."
Trellis Earth is a 7-year old company with over 500 customers in the food service industry including Kroger, Trader Joe's, and Wegmans. Key products provided include bio-based cutlery, food containers, and shopping bags.
"Of our 100+ products, we hope to make at least 50 percent of them in the U.S. within six months and the balance within a year," said Senzaki.
Trellis Earth is a privately held company with nearly $20 million of sales since its founding in 2007. The company is targeting $8.5 million in revenue for 2015 based on strong forecast demand from customers seeking its U.S.-made, corn starch based, proprietary bioplastic finished goods. The 105,000 square foot facility acquired from Cereplast has existing annual bioplastic manufacturing capacity to produce materials worth over $50 million.
Bob Crosby, Trellis Earth Vice President of Sales, said, "We have worked diligently over the last three years to build a pipeline of marquee customers seeking our sustainable, cost-neutral alternatives for cutlery and food containers. We hope to make several announcements in the coming weeks and months about key contracts that will drive the growth of our U.S. manufacturing strategy."
Axiom Capital Management Inc. of New York City represented the company in the transaction and acted as sole placement agent.