Shred-Tech gains tire recycling technology with CM Shredders purchase

CAMBRIDGE, Ontario—Industrial shredding and recycling solutions manufacturer Shred-Tech Corp. acquired CM Shredders in March in a move designed to support business growth for both organizations.

The purchase was finalized through Cambridge-based Shred-Tech's parent organization, Heico Companies.

The acquisition is expected to enhance Shred-Tech's product portfolio, extending its global reach and fortifying its North American manufacturing capabilities, according to both organizations. Financial details of the deal were not released.

CM Shredders historically was a tire recycling company that designed and manufactured advanced industrial shredders and recycling systems from its Sarasota, Fla., headquarters. With the acquisition, the combined company plans to extend its global reach in such areas as Asia and the Middle East, where CM Shredders has extensive history in sales.

That global reach was one of many benefits CM Shredders offered, according to Shred-Tech Marketing Manager Ben Street. CM Shredders has a 40,000-sq.-ft. indoor and temperature-controlled manufacturing facility, along with advanced CNC machining and manufacturing capabilities.

"They have a highly talented team comprising skilled machinists, expert assemblers and meticulous fabricators, all dedicated to delivering the highest quality products and performance in the industry," Street said.

According to Mario Vazquez, sales and marketing manager for CM Shredders, the merger will facilitate and speed up entry into previously untapped markets, especially those with emerging recycling needs or stringent environmental regulations.

"Many developing countries are increasingly focusing on sustainable waste management practices, presenting a ripe market for advanced recycling solutions," Vazquez said.

The combined 250 employees of the two companies will remain in place following the strategic move. Additional hires are expected throughout 2024.

"We're regularly hiring in many departments around the world," Street said, adding that new roles will be created in sales and operations to support demand. "In January we opened a brand-new manufacturing facility in Thailand positioned to support our global operations and be the hub of our (Asia-Pacific) business."

The new combined company will take advantage of the manufacturing strengths inherent with Shred-Tech and CM Shredders by bolstering efficiency, scale and agility, according to a company press release. Shred-Tech's manufacturing expansion at its Thailand facility further added to its efficiency, Street added.

The acquisition also will allow both companies to pool their research and development efforts to identify new best-in-class recycling technologies, Vazquez said. "This could involve developing more efficient shredding and size reduction systems, advanced sorting systems and innovative material recovery processes that cater to a wider range of materials with higher purity outputs," Vazquez said.

Street said the synergy created from the acquisition is expected to drive operational excellence, further positioning the merged entity as a leader in the industry with an increasingly global presence.

"I think global expansion will be a core focus," Street said. "CM Shredders has strength in parts of the world where Shred-Tech is not currently doing business. The new diversified product portfolio will be enticing to our customers."

Shred-Tech is a global manufacturer of shredding trucks including a diverse industrial two- and four-shaft shredder assortment. The company invested in heavy machinery distribution in 2022 and holds exclusive North American distribution rights to Pronar and Screenpod industrial equipment.

"With CM we now have a solid footing in tire recycling and a great basket of new technology. As a marketer this giant catalog of products is exciting," Street said.

Growth is expected across the board, according to officials from both firms. However, the source of that growth will be difficult to pinpoint because the combined company will remain dedicated to material reduction on an industrial scale in all markets. Both Shred-Tech and CM Shredders will retain their existing brands for now.

Street said that a combination of resources, engineering expertise, and manufacturing capabilities that take advantage of all concentrated knowledge from the two companies will happen over time, and that customers will benefit. He feels that the expanded entity is better positioned to meet the evolving needs of clients and respond effectively to industry challenges. Future acquisitions are possible and will depend on strategic goals and opportunities.

"What I can say (about future merger activity) is that it is a great time to be a part of this growing company," Street said.

CM Shredders was acquired by the Bengal Machine family of size reduction companies, which included its sister company, Schutte Hammermill, in December 2018. Schutte Hammermill is a New York-based manufacturer with a line of size reduction equipment that includes hammer mills, lump breakers, crushers, and shredders.