GreenMan Technologies Inc., the acquisition-minded tire recycling firm based in Lynnhaven, Mass., has signed a letter of intent to buy R&J Recycling Co. for an undisclosed amount.
R&J is a collector and seller of scrap tires operating in northern Minnesota and Wisconsin.
When the sale is complete-probably in early July-its operations will be folded into those of GreenMan Technologies of Minnesota Inc., and the 400,000-500,000 tires it gathers every year will be diverted entirely to the GreenMan facility in Savage, according to Chuck Coppa, GreenMan's chief financial officer.
Mr. Coppa referred to the R&J purchase as a ``tuck-in''-an acquisition of a small company that enhances GreenMan's general growth pattern. R&J's output will increase by about 5 percent the Savage plant's annual tally of 9.5 million scrap tires, he said.
``It's our strategy to grow externally through acquisitions and internally through new markets and business,'' Mr. Coppa said. ``Acquisitions such as R&J are an integral part of our growth plan.''
The purchase of R&J is the fifth such deal GreenMan has announced in a little over a year, and the fourth since the beginning of 2002.
In April 2002, GreenMan bought the Des Moines, Iowa, scrap tire collection and processing operations of Utah Recyclers Inc. A month before, it joined with Able Tire Co. L.L.C., of Burleson, Texas, to form Able Tire of Oklahoma L.L.C., a business to collect and market whole tires to cement kilns in Oklahoma.