LYNNFIELD, Mass.-Tire recycling firm GreenMan Technologies Inc. has purchased the operating assets of Tennessee Tire Recyclers Inc., a Parsons, Tenn.-based whole tire recycler, for an undisclosed amount.
TTRI's name will be changed to Technical Tire Recycling Inc., but otherwise will operate as a separate, wholly-owned subsidiary of GreenMan, according to GreenMan CFO Chuck Coppa, adding that Tom Carter, president of Tennessee Tire Recyclers Inc., will ``remain on the team'' at Technical Tire Recycling. However, he couldn't immediately say what Mr. Carter's title would be.
Both Mr. Carter and GreenMan CEO Bob Davis heralded the purchase as beneficial to both.
``We are excited about becoming an integral part of GreenMan's future and believe our expertise in the area of whole tire recycling will complement GreenMan's existing business,'' Mr. Carter said.
Mr. Davis noted that buying TTRI will add $2 million to GreenMan's annual revenue.
TTRI provides scrap tire collection and disposal services in Tennessee, Georgia, Texas and Oklahoma, and supplies whole tires and alternative fuel engineering services for the kilns of several large cement manufacturers throughout North America, Mr. Coppa explained.
Together with its tire chipping operations for tire-derived fuel, this gives Lynnfield-based GreenMan an enhanced presence in the U.S. tire recycling industry.
TTRI's whole tire expertise obviates the need to install shredders and other expensive equipment on site at customers' operations, he explained, while GreenMan's expertise in tire procurement greatly enhances TTRI's collection efforts.
Besides its headquarters in Lynnfield, GreenMan operates tire collection and processing facilities in Jackson, Ga., and Savage, Minn. Former operations at Batesburg, S.C., and Lawrenceville, Ga., were consolidated into the Jackson facility.
Founded in 1992, GreenMan lost $169,000 on sales of $18.1 million in the fiscal year ended Sept. 30, 2000. This compares with a $1.7 million loss on sales of $16.3 million in the year-earlier period.
In the quarter ended Dec. 31, 2000, GreenMan earned $12,000 on sales of $4.7 million, compared with a $59,000 loss on sales of $4.6 million in the quarter ended Dec. 31, 1999.