Trellis Earth Products, Inc., a leading maker of bioplastic food service disposables, will pay $2.6 million for substantially all of Cereplast’s assets including production equipment, patents, inventory, and trademarks, plus pay certain contract cure costs, as part of Cereplast’s Chapter 7 liquidation proceedings. United States Bankruptcy Judge Basil H. Lorch III entered the sale order for the assets of Cereplast, including its former Seymour bioplastics factory.
Trellis Earth said the acquisition of the factory will enable the company to quickly become the pre-eminent American supplier of bioplastic food service disposables.
Trellis Earth is a 7-year old company with over 500 customers in the food service industry including Kroger, Trader Joe’s, and Wegmans. Key products provided include bio-based cutlery, food containers, and shopping bags.
The company aims to make at least 50% of its 100+ products, in the U.S. within six months and the balance within a year.
Trellis Earth is a privately held company with nearly $20 million of sales since its founding in 2007. The company is targeting $8.5 million in revenue for 2015 based on strong forecast demand from customers seeking its U.S.-made, corn starch based, proprietary bioplastic finished goods. The 105,000 square foot facility acquired from Cereplast has existing annual bioplastic manufacturing capacity to produce materials worth over $50 million.
Axiom Capital Management Inc. of New York City represented the company in the transaction and acted as sole placement agent.