LYNNFIELD, Mass.—GreenMan Technologies Inc., at one time one of the most ambitious rubber recycling companies in the U.S., has put its last remaining recycled rubber subsidiary on the market.
On March 8, the GreenMan board of directors authorized company management to find potential buyers for Green Tech Products Inc., GreenMan's molded recycled rubber product subsidiary in Carlisle, Iowa.
Once Green Tech Products has been sold, GreenMan will be strictly an alternative energy and renewable fuel company, concentrating on its patented dual fuel technology for diesel engines, according to Chuck Coppa, GreenMan chief financial officer.
GreenMan acquired the then-Welch Products Inc., a Carlisle-based manufacturer of playground safety tiles and other recycled rubber products, in October 2007. At the time, Welch Products was one of GreenMan's major crumb rubber customers.
However, GreenMan sold its scrap tire processing operations in Iowa and Minnesota to Liberty Tire Services of Ohio L.L.C. in September 2008. GreenMan realized more than $26 million from the sale, said GreenMan CEO Lyle Jensen at the time. The company used the money to pay back $13 million to its primary lender, Laurus Master Fund Ltd., as well as several million dollars in transaction-related obligations.
Efforts are ongoing to identify potential buyers for Green Tech Products and will continue into the next quarter, according to Coppa. “If there is no buyer, we will present alternatives to the board of directors and let them make the decision,” he said.