Vegware: Scottish eco-packaging firm bought by US group
- Published
Vegware uses plant-based materials to make cups, cutlery and tableware
Scottish eco-packaging firm Vegware has been bought by a US corporation in what is understood to be a multi-million pound deal.
Edinburgh-based Vegware uses plant-based materials to manufacture cups, cutlery, tableware and takeout packaging which can be commercially composted with food waste.
It sells its products in more than 70 countries.
The value of the deal with packaging firm Novolex was not disclosed.
Vegware was founded in Edinburgh in 2006 by Joe Frankel, and operates bases in the UK, EU and US.
Mr Frankel said: "Joining Novolex, with its exceptional resources and large footprint, will allow Vegware to expand distribution of quality compostable products and waste management initiatives to our customers across the globe."
Novolex said the Vegware brand would remain as part of its eco-products portfolio.
Over the year to 31 January 2021, Vegware reported turnover of £36.4m - down by 14% on the previous 12 months.
The company attributed the fall to the effects of the pandemic, which saw continued office closures across the UK.
It said sales returned to pre-pandemic levels after lockdown restrictions eased.
Second US takeover
The deal came as another Scottish company announced it was being taken over by a US firm.
Glasgow-based Smarter Grid Solutions (SGS) is being acquired by Mitsubishi Electric Power Products for an undisclosed amount.
SGS, which was spun out from the University of Strathclyde, provides management software for power distribution utilities and DER (distributed energy resources) operators.
The US company - a subsidiary of Mitsubishi Electric Corporation - said SGS had helped power utilities in Europe and North America install, manage and optimise renewable energy resources.
It added that SGS would maintain its operations in Glasgow.
The deal is expected to close in the next few weeks.