Birch Hill Equity Partners completed its purchase of Newalta Corp.s Industrial Division last week, including its rerefinery in North Vancouver, Canada. The Toronto-based private equity firm renamed the business Terrapure Environmental.
A Terrapure official said the new ownership will probably decide at some point to expand the rerefinery, though he implied that is not likely under current market conditions, when margins for rerefined base stocks have largely disappeared.
The North Vancouver rerefinery is a crown jewel in our network and a strategically important part of our overall business and our potential for future growth, Greg Jones, Terrapures managing director for communications and public affairs, told Lube Report. Therefore, if market conditions were right, we would certainly revisit previous plans to consider an expansion that could allow us to deliver more to customers and shareholders.
Now headquartered in Burlington, Ontario, Terrapure employs 900 people and operates 33 government-regulated facilities across Canada. Terrapure will continue to focus on providing solutions that minimize waste and maximize the recycling of valuable industrial by-products.
The companys operations include the North Vancouver rerefinery; a lead-acid battery recycling facility in Ville Ste-Catherine, Que.; a non-hazardous industrial waste landfill in Stoney Creek, Ont.; as well as facilities and onsite services in various industry sectors like automotive, chemical and petrochemical, manufacturing, marine, mining, municipal, pulp and paper, and transportation.
The rerefinery has capacity to produce 400 b/d of Group II base oil. The sale of the Industrial Division will drive focus and funding to support growth in Newaltas New Markets and Oilfield divisions. Newalta intends to use the proceeds to strengthen its balance sheet. The company is in the midst of a cost-cutting initiative to relieve a financial squeeze.
Terrapure offers a wide array of services from recycling and management of hazardous and non-hazardous industrial waste, wastewater treatment, tank cleaning and product recovery; used oil recycling and others.
Terrapure is working with Jan Kelley Marketing of Burlington to develop its brand and related elements. It expects to introduce the new brand to customers and stakeholders in the spring.