Buyout shop H.I.G. Capital has recapitalized Advanced Environmental Recycling Technologies Inc., providing debt and equity financing to the company. Based in Springdale, Arkansas, Advanced Environmental Recycling is a manufacturer of wood composite decking products and a developer of polyethylene recycling technology. It is traded on the over-the-counter Bulletin Board. Terms of the deal were not released. Miami-based H.I.G. Capital has more than $8.5 billion under management.
H.I.G. Capital, LLC, a leading global private investment firm, announced that an affiliate has completed a financial restructuring of Advanced Environmental Recycling Technologies, Inc. (OTCBB: “AERT”) providing new debt and equity capital to the Company. H.I.G. has become the Company’s largest shareholder with an approximately 80% ownership stake on a fully-diluted basis. Based in Springdale, Arkansas, AERT is involved in two interconnected businesses: (i) a leading manufacturer of wood composite decking products and (ii) a nascent polyethylene recycling technology company. The decking materials are sold to the retail market through the Company’s ChoiceDek® brand which is exclusively carried by Lowe’s Companies, Inc. (NYSE:LOW); and through the MoistureShield® brand sold via a nationwide distributor network. The polyethylene recycling business has begun production following a significant investment in a new Green Age recycling facility located in Watts, OK. H.I.G. partnered with the Company and the senior management team to consummate the restructuring.
“We believe our partnership with H.I.G. and the strength, assistance, and guidance of the H.I.G. team of professionals is a real positive for AERT and our stakeholders,” said Joe Brooks, Chairman of AERT. “With H.I.G.’s backing and expertise, we will be well positioned to take advantage of growth opportunities and to better serve our customers.”
Michael Phillips, a Managing Director at H.I.G. commented, “We are very excited to partner with the senior management team and associates of AERT. The Company has demonstrated its leadership position as a high quality producer of composite decking products for over 20 years. We look forward to assisting AERT in continuing to grow the business, providing top quality products and service to its customers, while also further expanding its business into the manufacture and sale of recycled resin for the broader plastic extrusion industry.”
Since 1989, AERT has pioneered the use of recycled polyethylene plastic in the manufacture of composite building materials. With its constantly evolving portfolio of patented and proprietary recycling technologies, AERT has been widely recognized as a leader in resource conservation innovation and received the EPA Award for Environmental Excellence for its process of converting scrap plastic to composite outdoor decking. AERT converts reclaimed plastic and wood fiber waste into quality outdoor decking systems, fence systems, and door and window components. AERT operates manufacturing facilities in Springdale and Lowell, Arkansas and Watts, Oklahoma. For more information on the Company, visit http://www.aertinc.com.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $8.5 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, New York, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well-managed service or manufacturing businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. For more information, please refer to the H.I.G. website at www.higcapital.com.