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WM To Buy Controlling Stake In Avangard's U.S. Business To Form Natura PCR

Waste Management Inc. (WM) announced Tuesday that it has agreed to acquire a controlling interest in Avangard Innovative's U.S. Business. The financial terms of the deal were not disclosed.

The transaction is expected to close in late 2022, subject to the satisfaction of customary closing conditions, including regulatory approvals.

The newly-formed company will operate as Natura PCR, which is expected to scale and grow recycling capacity to produce an estimated 400 million pounds per year of post-consumer resin or PCR in five years.

Natura PCR, which will be primarily owned and controlled by WM, plans to grow recycling capabilities at Avangard's existing plant in Waller, Texas, and build new plant capacity in the Midwest.

Avangard and affiliated entities will hold a collective minority equity position in Natura PCR.

WM said it expects to receive investment returns comparable to its previously announced automation investments in single-stream recycling.

Natura PCR will focus on the mechanical recycling of film and flexible plastics and converts these materials to PCR that can be used to manufacture new products replacing virgin materials.

Through Natura PCR, WM expects to provide circular solutions for films and clear plastic wrap used commercially, such as plastic stretch wrap for pallets, furniture film, grocery bags and potentially shrink wrap around food and beverage containers.

In the deal, Goldman Sachs & Co LLC is serving as the exclusive financial advisor to WM and Seale & Associates, Inc. is serving as the exclusive financial advisor to Avangard Innovative.

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