Late last week, London-based private equity firm Aurelius announced the acquisition of Lincolnshire-based plastic bottle recycler, ECO Plastics, for an undisclosed sum.
Under the terms of the deal, Aurelius acquired all assets of ECO Plastics, including Continuum Recycling, the joint venture established by CCE and ECO Plastics in 2011.
The JV reprocesses around 150,000 tonnes of plastic each year.
In line with Aurelius' purchase, CCE and ECO Plastics have ended their partnership.
"We are pleased that ECO Plastics has found a buyer to support the next stage in the development of the UK's most important supplier of food-grade recycled PET," CCE said in a statement.
"As part of the financial agreement, Coca-Cola Enterprises Ltd has agreed not to continue with the joint venture, Continuum Recycling. In return, CCE has entered into a long-term agreement to source recycled PET from ECO Plastics."
CCE confirmed, however, that ECO Plastics will continue to supply it.
"This new arrangement will ensure that CCE continues to use a minimum of 25% rPET in our plastic bottles in Great Britain, allowing us to deliver our commitments to set the standards for sustainable packaging," the company added.
Aurelius claims to have a "strong track record" in the plastic sector, previously owning Wellman International.
Commenting, Jonathan Short, founder and deputy chairman, ECO Plastics, said the deal would take it to "the next level."
"This news is not just a vote of confidence in the future of ECO Plastics, but a vote in the promising future of the UK's fast growing recycling sector. Working with Aurelius will take the ECO Plastics story to the next level," said Short.
"The new owner will not only bring in new expertise and financial resources, but also a shared commitment to the development of a more sustainable, circular economy in the UK."