- Close the Loop (CLG) acquires sustainable paper products company, Alliance Paper, for $1 million and a $4.5 million investment in working capital
- The company says this strengthens its position in the sustainable paper product sector and allows it to develop new products that can replace traditional plastic packaging
- The acquisition is also anticipated to enhance earnings in FY23 with Alliance expected to grow its revenue to almost $20 million
- Further to its goal of repurposing used products, CLG and Myer are initiating a recycling trial to reduce the amount of cosmetic packaging that ends up in landfill each year
- CLG shares end the day in the grey to close at 40 cents
End-to-end solutions provider Close the Loop (CLG) has acquired Alliance Paper for $1 million and a $4.5 million investment in working capital.
Alliance Paper is a thermal paper and sustainable paper products company that offers a range of BPA and phenol-free thermal receipt rolls and other products that can be recycled.
It is Australia’s largest and longest-serving supplier and converter of paper roll products who supplies leading supermarkets as well as leading brands such as KFC, McDonald’s, Nike, and Bank of Queensland.
According to Close the Loop, this purchase strengthens its position in the sustainable paper product market and allows it to develop new products that can replace traditional plastic packaging by utilising Alliance’s technologies.
Close the Loop also said the acquisition will enhance revenue and profitability in FY23 with Alliance expected to grow its revenue from $11.7 million in FY22 to $19.7 million in FY23.
The revenue increase will reportedly be driven by new supply contracts and investing in inventory to reflect the demand.
“We are thrilled to acquire Alliance as it further strengthens our position in the lucrative thermal paper and paper products sector and provides us with a highly complementary market space and product suite to our existing packaging offering,” CLG Group CEO Joe Foster said.
Alliance Paper’s Managing Director, Jon Williams, also commented on the acquisition.
“For us, true circular integration requires a broad and complete approach and to be part of Close the Loop’s industry-leading solution is an opportunity to deliver real change,” Mr Williams said.
“The capacity to develop and deliver chemical-free paper packaging solutions manufactured with the same organisation that can manage the waste stream for the same post-consumer use items is a rewarding and exciting next step for our organisation.”
Further to its goal of recycling and repurposing used products, Close the Loop is trialling a National Cosmetics Collection Scheme with ASX-listed retailer Myer (MYR).
The aim of this collaboration is to research new ways of recycling cosmetics and combat the estimated 5000 to 11,000 tonnes of cosmetic packaging that ends up in Australia’s landfill every year.
The government-backed scheme will sort through packaging from Myer collection bins and MAC Cosmetics’ Back to MAC program and put them into eight categories that Close the Loop will process to be recycled and remade into other products.
CLG shares ended the day in the grey to close at 40 cents.