Green Dot Holdings acquires MGP Ingredients' bioplastics division
Cottonwood Falls, Kan.-based Green Dot Holdings LLC has acquired the bioplastics division of Atchison, Kan.-based MGP Ingredients Inc. According to Green Dot, the acquisition includes a manufacturing facility located in Onaga, Kan., certain assets at the company’s research and development facility in Atchison, and three lines of bioplastic materials currently sold by MGP under the Terratek brand name.
Green Dot formed in 2011 with the mission to develop and commercialize a technology used to manufacture a biomass-based elastomer. The soft, rubber-like plastic is fully biodegradable and compostable, said Green Dot CEO Mark Remmert. “The primary ingredient for the Green Dot elastomer is a derivative corn starch,” he continued. “So we have some technology and expertise around the use of starches and other organic materials to produce plastics.”
The acquisition increases Green Dot’s product offerings. The Terratek line of products includes wood-based bioplastics, starch composites and biodegradable starch-based resins. In addition to its elastomers and the Terratek line, Green Dot can also develop customized client formations using starch, wood and other biomass materials. According to the company, its state-of-the-art compounding lab can quickly develop and test formulas for specific formulations.
“The two companies are very much complimentary,” Remmert said, noting that they employ similar technology bases, feedstocks, and manufacturing processes, along with similar types of equipment. The companies are also located near one another.
"This agreement presents wonderful opportunities for all parties involved," said MGP President and CEO Tim Newkirk. "MGP is selling this business to a company firmly established in the plastics industry. With their experience, market knowledge and capabilities, Green Dot is well-positioned for success in the arena of eco-friendly product solutions. For MGP, this transaction aligns with our focus on supporting growth in our core business areas - food ingredients and alcohol products."
Additional acquisitions and expansions could be in Green Dot’s future. “We do have an ambition and desire to continue to grow the company,” Remmert said. Green Dot is also investigating the use of alternative feedstocks for manufacturing its bioplastics. “We hope to start two projects this year that would take us down a path of using other starches, for example, to replace the corn and wheat starches that we use today,” he continued.