LYNNFIELD, Mass. (June 16, 2011)—GreenMan Technologies has found a buyer for its last remaining recycled rubber subsidiary, completing the company's exit from the rubber business.
Subject to shareholder approval, GreenMan has entered into an agreement with Irish Knight Holdings L.L.C. for the latter company to buy Green Tech Products Inc., GreenMan's molded recycled rubber product subsidiary in Carlisle, Iowa.
Under the terms of the agreement, Irish Knight will purchase substantially all of Green Tech Products' assets, assume substantially all its liabilities and provide $150,000 of additional consideration in the form of a promissory note and inventory credits, according to GreenMan.
GreenMan said it expects to close the deal sometime during July 2011.
Green Tech was known as Welch Products Inc. when GreenMan bought it in October 2007. A manufacturer of playground safety tiles and other recycled rubber products, Welch at the time was one of GreenMan's major crumb rubber customers.
The following year, however, GreenMan sold its scrap tire processing operations in Iowa and Minnesota to Liberty Tire Services of Ohio L.L.C., leaving Green Tech as its only remaining connection to rubber recycling.
With the sale of Green Tech, GreenMan becomes strictly an alternative energy and renewable fuel company. Its alternative energy subsidiary, American Power Group Inc., markets a patented dual fuel conversion technology for diesel engines and diesel generators.