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 Apollo
affiliates (the “Apollo Funds”) have agreed to commit up to $300
million to an innovative structured solution in the form of a
senior, secured loan to support the company’s ongoing development
of recycling infrastructure. Circulus is a portfolio company of Ara
Partners, a private equity firm specializing in industrial
decarbonization investments.
Based in Houston, Circulus is an emerging leader
in plastics recycling, utilizing proprietary technologies to
transform olefin plastics into resins suitable for a variety of
commercial and industrial applications. The company’s products look
to support the circular economy with post-consumer resins suitable
for applications such as plastic bags, shrink film, pouches,
overwraps, and many more consumer-facing applications. Circulus
currently has two plants producing PCR, with one additional
facility coming online in the near term and two more in
development.
Circulus’ platform offers compelling ESG
benefits including:
- an advanced
approach to PCR production that focuses on under-recycled polymers
to help divert plastic waste away from landfills, incinerators and
oceans, while creating circular materials with a greatly reduced
GHG emissions footprint;
- operations that
facilitate water conservation, with 85 percent of plant water being
reused;
- a commitment to
minimize the carbon footprint of current and future facilities with
the development of GHG emissions targets across the company’s
operations; and
- creation of
green careers as the company continues to expand its
footprint.
Craig Foster, Circulus CEO, said, “We are
pleased to partner with Apollo to support Circulus’ continued
growth as we execute on our expansion plans. Apollo’s substantial
resources and industry expertise will be a significant value-add as
we continue to solve challenges in the path to a circular
economy.”
Apollo Partner Corinne Still said, “With a
seasoned management team, first-mover advantage in the North
American LPDE market, best-in-class manufacturing technology and
strong industry tailwinds, Circulus is well positioned to execute
on 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, a Managing Partner of Ara
Partners, said, “We are thrilled to welcome Apollo as an additional
financial partner for Circulus as the company continues its
ambitious infrastructure buildout. We are very pleased by Circulus’
progress since we invested in the company and are excited about 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 behind sustainable
companies working to build a cleaner economy, and this transaction
is the latest example of our ability to provide innovative capital
solutions alongside measurable environmental impact outcomes.”
The transaction underscores Apollo’s commitment
to driving a more sustainable future and long track record of
investing in or lending to companies supporting the energy
transition. Earlier this year, Apollo launched its Sustainable
Investing Platform, which targets to deploy $50 billion in clean
energy and climate capital over the next five years and sees the
opportunity to deploy more than $100 billion by 2030. Over the last
five years, Apollo deployed over $19 billion1 into energy
transition and sustainability-related investments, supporting
companies and projects across clean energy and 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.
About Circulus
Circulus Holdings, PBLLC is focused on the
conversion of plastic waste into post-consumer resins (PCR)
utilizing world-class mechanical recycling solutions. Circulus
contributes to the circular economy by recycling plastics to their
highest and best use while eliminating waste. The company is
headquartered in Houston, Texas and currently has facilities in
development across the U.S. For more information on 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 industrial & manufacturing, chemicals
& materials, energy efficiency & green fuels and food &
agriculture sectors, seeking to build businesses that are focused
on sustainability and ESG principles. For more information on Ara
Partners, please visit www.arapartners.com.
About Apollo
Apollo is a high-growth, global alternative
asset manager. In our asset management business, we seek to provide
our clients excess return at every point along the risk-reward
spectrum from investment grade to private equity with a focus on
three investing strategies: yield, hybrid, and equity. For more
than three decades, our investing expertise across our fully
integrated platform has served 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
providing a suite of retirement savings products and acting as a
solutions provider to institutions. Our patient, creative, and
knowledgeable approach to investing aligns our clients, businesses
we invest in, our employees, and the communities we impact, to
expand opportunity and achieve positive outcomes. As of June 30,
2022, Apollo had approximately $515 billion of assets under
management. To learn more, please visit www.apollo.com.
_____________________________
1 As of December 2021. Reflects (a) for equity investments: (i)
total enterprise value at time of signed commitment for initial
equity commitments; (ii) additional capital contributions from
Apollo funds and co-invest vehicles for follow-on equity
investments; and (iii) contractual commitments of Apollo funds and
co-invest vehicles at the time of initial commitment for preferred
equity investments; (b) for debt investments: (i) purchase price on
the settlement date for private non-traded debt; (ii) increases in
maximum exposure on a period-over-period basis for publicly-traded
debt; (iii) total capital organized on the settlement date for
syndicated debt; and (iv) contractual commitments of Apollo funds
and co-invest vehicles as of the closing date for real estate debt;
(c) for SPACs, the total sponsor equity and capital organized as of
the respective announcement dates; (d) for platform acquisitions,
the purchase price on the signed commitment date; and (e) for
platform originations, the gross origination value on the
origination date.
Contact Information
For Apollo investors:
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com
For Apollo media:
Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822 0491
Communications@apollo.com
For Circulus media:
David Hudson
832-699-7459
PR@circulus.com
For Ara media:
Mark Semer / Alex Jeffrey
Gasthalter & Co.
(212) 257-4170
arapartners@gasthalter.com
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