Trellis Earth Products to acquire Cereplast assets

By Jenny Eagle contact

- Last updated on GMT

Trellis Earth Products to acquire Cereplast assets

Related tags: Starch

Trellis Earth Products is set to acquire all of Cereplast's assets for $2.6m, including its former Seymour bioplastics factory.  

The assets include production equipment, patents, inventory, and trademarks, and the company will pay certain contract cure costs, as part of Cereplast's Chapter 7 liquidation proceedings.

Food containers

Trellis Earth is a seven-year old company with over 500 customers in the food service industry including Kroger, Trader Joe's, and Wegmans. Products include bio-based cutlery, food containers, and shopping bags. 

FoodProductionDaily reported in February this year​, Cereplast, a manufacturer of bio-based, compostable plastics for packaging and other applications, filed for bankruptcy.

"We have long wanted to mark our products as 'Made in the U.S.A​.'," said Mike Senzaki, CEO, Trellis Earth. 

"The acquisition of this factory will enable to us to quickly become the pre-eminent American supplier of bioplastic food service disposables​." 

"Of our 100+ products, we hope to make at least 50% of them in the US within six months and the balance within a year​."   

Trellis Earth is a privately held company with nearly $20m of sales since its founding in 2007. The company is targeting $8.5m in revenue for 2015 based on strong forecast demand from customers seeking its US-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 $50m.

Axiom Capital Management Inc. of New York City represented the company in the transaction and acted as sole placement agent.

Related topics: Processing & Packaging

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