USA/Hong Kong – US plastics recycler and trader Green EnviroTech has acquired Magic Bright Ltd, which operates in the same sector in Hong Kong.
In the USA, Green EnviroTech has plans to process and sell as much as it can of the plastics component of auto shredder residue generated annually by metal recyclers, estimated at 1.25 million tonnes. The company is building a 5000 square metre facility in Riverbank, California and has another planned for Wisconsin.
The Magic Bright acquisition, valued at US$6 million, will help Green EnviroTech capture a larger share of the global market. Management teams of the two companies have begun integrating their respective products, technologies and customers.
The deal gives Green EnviroTech access to Magic Bright’s significant distribution channels in Asia, including the lucrative Chinese market. Magic Bright has reported revenues of more than US$28 million in each of the last three years thanks to long-term distribution contracts in mainland China. With additional working capital and increased marketing, it is expected to generate annual revenue of US$40 million following its acquisition.
Gary De Laurentiis, CEO and Chairman of Green EnviroTech Holdings Corp, said: ‘The acquisition of Magic Bright should be immediately beneficial to shareholders as the combined company will not only enjoy operational synergies, but also a vastly strengthened balance sheet with a solid asset base and significant recurring revenues for years to come.’
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