Tire recycling firm GreenMan Technologies Inc. has signed a letter of intent to purchase the Iowa-based scrap tire collection and processing operations of Utah Recyclers Inc. for an undisclosed amount.
Headquartered in Des Moines, the Iowa operations of Utah Recyclers handle more than 2 million tires annually, according to a GreenMan news release.
GreenMan expects the deal to close in April, and will operate the Des Moines plant as GreenMan Technologies of Iowa Inc., according to Chuck Coppa, GreenMan chief financial officer. Most of the Iowa facility's business is in tire-derived fuel, although it also has some contracts for crumb rubber, he said.
Utah Recyclers and GreenMan-which has long had operations in nearby Minnesota-have worked together the past few years on remediation of Iowa's worst illegal tire dumps, according to Coppa.
``Between us, we've cleared more than 7 million tires there, so we got to know each other pretty well,'' he said. ``We knew that Utah Recyclers wanted to focus more on its operations in Utah, and we have great synergy in Iowa, so we decided to approach them about buying those operations.''
GreenMan is one of the most expansion-minded tire recyclers in the U.S. On March 1 it opened Able Tire of Oklahoma L.L.C., a joint venture with Able Tire Co. L.L.C. of Burleson, Texas, to collect and market whole tires to cement kilns in Oklahoma. Within the last year or so it has acquired tire recycling operations in Wisconsin and Tennessee.
Officials of Utah Recyclers could not be reached for comment.