Breaking News on Food and Beverage Processing and PackagingWorldUSEurope

News > Financial

News in brief

Trellis Earth Products to acquire Cereplast assets

Trellis Earth Products to acquire Cereplast assets

Trellis Earth Products is set to acquire all of Cereplast's assets for $2.6m, including its former Seymour bioplastics factory.  

The assets include production equipment, patents, inventory, and trademarks, and the company will pay certain contract cure costs, as part of Cereplast's Chapter 7 liquidation proceedings.

Food containers

Trellis Earth is a seven-year old company with over 500 customers in the food service industry including Kroger, Trader Joe's, and Wegmans. Products include bio-based cutlery, food containers, and shopping bags. 

FoodProductionDaily reported in February this year , Cereplast, a manufacturer of bio-based, compostable plastics for packaging and other applications, filed for bankruptcy.

"We have long wanted to mark our products as 'Made in the U.S.A.'," said Mike Senzaki, CEO, Trellis Earth. 

"The acquisition of this factory will enable to us to quickly become the pre-eminent American supplier of bioplastic food service disposables." 

"Of our 100+ products, we hope to make at least 50% of them in the US within six months and the balance within a year."   

Trellis Earth is a privately held company with nearly $20m of sales since its founding in 2007. The company is targeting $8.5m in revenue for 2015 based on strong forecast demand from customers seeking its US-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 $50m.

Axiom Capital Management Inc. of New York City represented the company in the transaction and acted as sole placement agent.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Related products