An ag plastics collector, processor and end user will be acquired by a private equity firm, which took note of the company’s unique business model and plans for growth.
Little Rock, Ark.-headquartered Revolution will receive a controlling interest from New York City private equity firm Arsenal, the companies announced last week. Revolution operates plastics recycling company Revolution Plastics, manufacturer Delta Plastics and other companies.
Revolution Plastics collects polyethylene film from farms across the Midwest. That material goes to Delta Plastics, which processes the film and uses it to manufacture construction film and trash-can liners. Delta has manufactured ag products from recycled plastic for years, but the scrap collection side of the business ramped up in 2016 with the launch of Revolution Plastics.
The collection operation has quickly grown, expanding around the Midwest and opening up operations in California. In 2017, Delta Plastics acquired industrial plastic sheeting and bag manufacturer Rodeo Plastics of Mesquite, Texas. Last year, the company acquired a bag maker and a reclaimer in California, deepening the firm’s West Coast presence.
The acquisition is expected to close before the end of July. Terms of Arsenal’s investment were not disclosed.
Demand is key
With the recent acquisition, Revolution anticipates continuing its expansion – and the company cited rising demand for post-consumer plastic as a strong driver.
“The dramatic growth in demand and expectations by businesses and consumers for sustainable plastic solutions provides us with significant white space and opportunity,” Revolution CEO Sean Whiteley said in a press release, adding that the acquisition by Arsenal will “help us identify and capitalize on those opportunities.”
Arsenal also pointed to significant opportunities for expansion, tied to growing post-consumer resin demand.
“This is just the beginning of the long-term trend for robust growth as demand continues to build for better ways to handle plastic waste and PCR products,” stated Tim Zappala, a senior partner at Arsenal, in the release.
Revolution is part of a coalition of film recycling stakeholders pushing for greater recycled film use among manufacturers, particularly bag producers.
