Venture capital firm acquires CRA

Recycling Today, Dec, 2006

WHI Capital Partners, a Chicago-based private equity firm, has acquired Container Recycling Alliance (CRA), the glass recycling division of Waste Management Inc.

CRA, based in Lombard, Ill., operates eight glass recycling facilities in the United States. The company processes around 500,000 tons of glass per year and is the second largest operator of glass recycling facilities in the United States. CRA uses automated ceramic detection and color sorting, as well as full bottle destruction and decasing capabilities.

"The rise of energy costs has created strong demand for clean cullet by the container manufacturers who are working to maintain their profit margins," Tom Riek, CEO of CRA, says. "We look forward to working with our customers, and establishing new supply sources, to provide the highest quality product to meet existing and future demand."

Riek partnered with WHICP to purchase CRA, which he previously ran for Waste Management. He served as president of CRA from 2001 to 2004 before being promoted to finance director of Waste Management Recycle America.

"CRA produced some of its most profitable years under Tom Riek and his team's leadership," Adam Schecter, WHI Capital Partners managing partner, says. "Tom is a proven CEO with tremendous operational expertise as well as a keen ability to develop longstanding and mutually beneficial relationships with key suppliers and customers."

Along with the acquisition, the two parties entered into a long-term supplier agreement through which Waste Management will continue to supply the CRA plants with the collected glass.