Canadian rubber recycler sold to unnamed buyer

Toronto, Ontario - The Penrose Group Inc., a leading Canadian consulting and mergers and acquisitions firm, has facilitated the sale of Rubber Tech International Inc to an undisclosed purchaser. Rubber Tech Internationa, based near Edmonton, Alberta,l is a major producer of powdered rubber crumb from scrap tyres.

The deal, which Penrose says is an eight-figure [Canadian] dollar transaction, closed 16 Nov and includes a long-term rubber-crumb supply agreement with Champagne Edition Inc, a world-leading manufacturer of recycled rubber products, according to a 16 Nov announcement from Penrose.

Lindsey Penrose, president and chief executive officer of The Penrose Group commented, "We are extremely proud to have facilitated the sale of Rubber Tech and hope to build a long-lasting and mutually beneficial relationship with the purchaser. This was a smooth transaction and our team did a great job putting it all together, it's a win-win situation for all involved."

The Penrose Group will continue to function as the lead business development consultant for Champagne. Champagne's range of patented products and trademarked brands including rubber flooring products used in outdoor flooring and mats used in the agricultural arena, such as floor linings for cattle stalls.

Champagne Edition, founded by Alan Champagne, CEO in October 1992, operates out of a 70 000- square foot (6500-m2) plant about 30 km north of Edmonton and has a sales & marketing office in Rockwood, Ontario. Champagne Edition along with Rubber Tech International employs 90-100 people.

The company uses about 11 million pounds (5000 tonnes) of material per month, which Penrose says equals about 500 000 tyres per month. All raw material is presently sourced from Western Canada, but the company anticipates outsourcing raw material in the future based on increased consumer demand for the company's high quality recycled products.

In 2009 the firm will be recycling close to 6 million tyres a year. To date Champagne Edition Inc. has been responsible for recycling over 33 million passenger car tyres, according to Penrose information.

For more information on the firm's products, visit www.eco-flex.com.