K.B. Recycling Industries Ltd, an environmental technology company that carries on business under the name Alkemy, has announced that it is acquiring 100% of the shares of Spain-based plastics converter Plasticos Flome S.L. To that end, the companies have signed a share purchase agreement in an arm's length transaction designed to allow Alkemy, headquartered in Israel, to further strengthen its presence in the European market.
Last year, the company sought the support of Germany-based recycling consultancy Oceansix, with whom it entered into a consulting agreement, to fulfil its ambition of entering and expanding into Europe.
Alkemy has developed a one-step plastic recycling process for plastic bags and sheets traditionally not considered economically viable for recycling. The process, which does not require separate recycling and production plants, includes both recycling and finished product manufacturing in a single process called “waste-to-product”. The company’s product line is currently mainly focused on the construction industry, although the company is working to expand the range of product applications.
Flome is a plastics manufacturing company operating in Valencia, Spain. Flome’s production site has seven operating lines of vacuum-forming manufacturing. Flome uses plastic sheets and boards as raw materials for manufacturing trays and packaging for automotive, agriculture, and beverage industries.
The acquisition will also effectively expand Alkemy’s production through vertical integration. Flome will use Alkemy’s products - films and boards derived from recycled plastic bags - as input materials, enabling the converter to achieve a more sustainable product line. According to Yoav Horowitz, chairman of the board of Alkemy, Flome will use Alkemy’s recycled plastic sheets for its current products while developing additional value-added products also able to utilise these.
“The acquisition is another step in our move towards global activity by expanding our value chain and bringing our innovative plastic recycling technology from Israel to Europe,” said Ami Krupik, founder, Innovation, Technology and Interim CEO of Alkemy.
“We expect this step will increase our growth and propel a fruitful collaboration on further product development. Flome’s research and development team has already forged a close working relationship with Alkemy, and Flome’s production facilities are ideally suited for short cycles of product development and research and development prototyping,” Krupik added.
In consideration for the purchase of the issued and outstanding shares of Flome, Alkemy will pay the shareholders of Flome, a total amount of €1,800,000.
K.B. Recycling Industries expands European footprint with Spanish acquisition
