Circulus Announces $300M Structured Solution from Apollo Infrastructure
News and research before you hear about it on CNBC and others. Claim your one week free trial for StreetInsider Premium here.
Transaction Positions Circulus for Continued Growth in LDPE Recycling
Highlights Apollo’s commitment to driving a more sustainable future
HOUSTON and NEW YORK, Oct. 11, 2022 (GLOBE NEWSWIRE) — Circulus Holdings, PBLLC (“Circulus”), a producer of post-consumer resin (PCR) from recycled low-density polyethylene (LDPE), and Apollo (NYSE : APO) today announced that funds managed by affiliates of Apollo (the “Apollo Funds”) have agreed to commit up to $300 million in an innovative structured solution in the form of a secured loan leader in supporting the continued development of the company’s recycling infrastructure. Circulus is a portfolio company of Ara Partners, a private equity firm specializing in industrial decarbonization investments.
Houston-based Circulus is an emerging leader in plastics recycling, using proprietary technologies to transform olefin plastics into resins suitable for a variety of commercial and industrial applications. The company’s products aim to support the circular economy with post-consumer resins suitable for applications such as plastic bags, shrink wrap, pouches, overpacks and many other consumer applications. Circulus currently has two PCR production plants, with an additional facility to be commissioned in the short term and two others in development.
The Circulus platform offers compelling ESG benefits, including:
- an advanced approach to PCR production that focuses on under-recycled polymers to help divert plastic waste from landfills, incinerators and oceans, while creating circular materials with a significantly reduced GHG emissions footprint;
- operations that facilitate water conservation, with 85% of factory water being reused;
- a commitment to minimizing the carbon footprint of current and future facilities with the development of GHG emissions targets across all company operations; and
- creating green careers as the company continues to expand its footprint.
Craig Foster, CEO of Circulus, said, “We are delighted to partner with Apollo to support the continued growth of Circulus as we execute on our expansion plans. Apollo’s substantial resources and industry expertise will add significant value as we continue to solve challenges on the path to a circular economy. »
Corinne Still, Apollo Partner, said, “With a seasoned management team, first-mover advantage in the North American LPDE market, cutting-edge manufacturing technology and strong industry tailwinds, Circulus is well positioned to execute its growth plans. We look forward to leveraging our deep relationships and experience within the petrochemical industry to support the company’s continued expansion.
Troy Thacker, Managing Partner of Ara Partners, said, “We are delighted to welcome Apollo as an additional financial partner for Circulus as the company continues its ambitious infrastructure build. We are very pleased with the progress of Circulus since we invested in the company and look forward to our continued collaboration with Craig Foster and the team.
Geoff Strong, Partner and Co-Head of Infrastructure and Natural Resources at Apollo, added, “We are always looking for opportunities to invest in sustainable businesses working to build a cleaner, and this transaction is the latest example of our ability to deliver innovative solutions. capital solutions alongside measurable environmental impact results.
The transaction underscores Apollo’s commitment to driving a more sustainable future and its long track record of investing or lending to businesses supporting the energy transition. Earlier this year, Apollo launched its Sustainable Investing Platform, which aims to deploy $50 billion in clean energy and climate capital over the next five years and sees the potential to deploy more than $100 billion. by 2030. Over the past five years, Apollo has deployed more than $19 billion1 in investments related to energy transition and sustainable development, supporting companies and projects in the field of energy and clean infrastructure, including offshore and onshore wind, solar, storage, renewable fuels, electric vehicles as well as a wide range of technologies to facilitate decarbonization.
Citigroup acted as capital markets advisor to Circulus. White & Case LLP acted as legal counsel to Circulus. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal counsel to the Apollo Funds.
Circulus Holdings, PBLLC is focused on converting plastic waste into post-consumer resins (PCR) using world-class mechanical recycling solutions. Circulus contributes to the circular economy by recycling plastics for their optimal use while eliminating waste. The company is headquartered in Houston, Texas, and currently has facilities under development across the United States. For more information about Circulus, please visit www.circulus.com.
About Ara Partners
Ara Partners is a private equity firm specializing in industrial decarbonization investments. Ara Partners invests in the industrials and manufacturing, chemicals and materials, energy efficiency and green fuels, and food and agriculture sectors, seeking to build companies focused on sustainability and ESG principles. For more information about Ara Partners, please visit www.arapartners.com.
Apollo is a high growth global alternative asset manager. In our asset management business, we seek to provide our clients with excess return at every step of the risk-reward spectrum, from investment grade to private equity, with a focus on three investment strategies : yield, hybrid and equities. For more than three decades, our investment expertise on our fully integrated platform has met the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by offering a range of retirement savings products and acting as a solution provider to institutions. Our patient, creative and knowledgeable approach to investing aligns our clients, the companies we invest in, our employees and the communities we impact, to expand opportunities and achieve positive results. As of June 30, 2022, Apollo had approximately $515 billion in assets under management. For more information, visit www.apollo.com.
1 As of December 2021. Reflects (a) for equity interests: (i) total enterprise value at time of commitment signing for initial equity commitments; (ii) additional capital injections from Apollo funds and co-investment vehicles for follow-on equity investments; and (iii) contractual commitments of the Apollo funds and co-investment vehicles at the time of initial commitment for preferred stock investments; (b) for debt investments: (i) purchase price on settlement date for non-traded private debt; (ii) increases in maximum exposure from period to period for listed debt securities; (iii) total organized capital at the settlement date of the syndicated debt; and (iv) the contractual commitments of the Apollo funds and the co-investment vehicles at the closing date of the real estate debts; (c) for SPACs, the total equity and organized capital of the sponsor as of the respective announcement dates; (d) for platform acquisitions, the purchase price on the date of the signed commitment; and (e) for deck mounts, the gross mount value as of the date of mount.
For Apollo Investors:
Global Head of Investor Relations
Apollo Global Management, Inc.
For Apollo media:
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822 0491
For Circulus media:
For Ara media:
Mark Semer / Alex Jeffrey
Gasthalter & Cie.
Source: Apollo Global Management, Inc.