Thomson Geer advises Close the Loop on acquisitions, capital raising

Thomson Geer has assisted ASX-listed recycling and circular economy company Close the Loop (CLG) to:

• acquire two US-based electronics refurbishing and trading companies for US$66 million (A$100 million);
• successfully raise A$45 million from institutional investors to help fund the acquisition; and
• obtain substantial debt funding to fund the balance of the cash component of the acquisition.

Close the Loop’s acquisition of ISP Tek Services and Captive Trade Corp will provide significant consumer and commercial electronics remanufacturing and technological capabilities, a considerable US market sales and trading presence, and extensive distribution networks.

This deal, which is due to complete at the end of April 2023, will also add reuse capabilities to Close the Loop’s portfolio and further strengthen its service offering to original equipment manufacturers, supporting sustainability and circular economy initiatives.

The Thomson Geer team has been led by Partner David Schiavello who said: “We congratulate Close the Loop on this transformative deal as it grows to cement itself as a leader in the global circular economy.”

The capital raising was heavily oversubscribed with no discount to Close the Loop’s pre deal announcement share price, reflecting the strength of the company and its acquisitions.

Thomson Geer advised Close the Loop on all Australian legal aspects of the acquisitions, equity capital raising and debt financing.  In doing so, Thomson Geer have worked in tandem with Sidley Austin, Close the Loop’s US lawyers on the transaction.

David was assisted by Special Counsel Lisa Marcus and Lawyer Elizabeth Hanrahan on the M&A and equity capital markets aspects of the deal.  Finance Partner Andrea Wookey and Associate Kelly Murray worked on the debt financing aspects of the transaction.

Thomson Geer also advised Close the Loop on its successful merger with packaging printer and cardboard paper recycler O F Packaging, its IPO and ASX listing in 2021 and several acquisitions as a listed company in the last 18 months.

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