Clover Environmental Solutions
Clover Environmental Solutions has just reached a significant milestone as it recently announced the successful acquisition of all operating assets from America’s Remanufacturing Company.
As experts in providing sustainable lifecycle management services and solutions, this latest move by the company will give it access to ARC’s returns management and remanufacturing solutions for OEMs, distributors, and retailers. However, the terms of the deal remain confidential.
Clover Environmental Solutions is committed to developing sustainable solutions that encourage the reclamation, returns management, remanufacturing, and recommerce of both commercial and consumer products.
Drawing on its superior engineering, manufacturing, and distribution network capabilities, the organization provides industry-leading solutions to maximize product lifecycle for OEMs and retailers around the world. As a result, the firm has become renowned as one of the leading providers of product lifecycle management.
American Remanufacturing Company’s (ARC) Services
Located in Augusta, Georgia, ARC stands alone as the only vertically integrated provider offering end-to-end returns management solutions. The firm provides North America with comprehensive services that span from receiving and processing to remanufacturing, technical services, recycling, to recommerce.
The mission of the American Remanufacturing Company (ARC) is to provide OEMs, distributors, and retailers with the best in returns management and remanufacturing solutions. This includes cost reduction, brand protection, enhanced customer experience, and access to important information garnered from returned products.
Offering a diverse range of products, ARCs portfolio encompasses everything from small home appliances and consumer electronics, to floor care, home comfort solutions, power tools and outdoor equipment.
Details of the Acquisition
Speaking of the acquisition, Clover Environmental Solutions CEO, George Milton remarked that it was a “pivotal moment in our diversification and growth strategy.”
He added that, “The infrastructure, relationships, and expertise that ARC has established during its 21 years of operation, coupled with Clover’s expansive geographic footprint, advanced engineering capabilities, and financial resources, uniquely position the combined entity to go to market with true end-to-end returns management and recommerce solutions in North America.”
Bankruptcy and Restructuring
As 2019 ended, Clover submitted a Chapter 11 bankruptcy filing and underwent restructuring of around $644 million in long-term debt.
To raise funds, Clover sold off Clover Imaging, an organization that specialized heavily on printer cartridge remanufacturing and printer components.
“Under our new, very low debt structure, we have a lot of flexibility moving forward and are well positioned to write the next chapter for Clover Imaging Group,” Jim Cerkleski, Chairman of Clover Imaging Group, stated in a press release. “We could not be more excited about the growth opportunities this new capital and partnership will provide.”
Clover Imaging released its own message in response to 4L Holdings Group’s Chapter 11 filing, announcing that the sale of the company would not have any implications on its independence or operations. “There will be no shared financials, facilities, operations, or personnel with 4L Holdings Group or Clover Wireless,” the statement reports. Furthermore, it states that part of the proceeds from the sale have been allocated towards reducing 4L Holding’s long-term debt.
Shortly after this transaction was completed, the company shifted its attention to mobile device repair centers and acquired Teleplan International, a supply chain provider based out of the Netherlands that specializes predominantly on mobile device repair centers.
“This exciting, highly complementary combination will significantly expand the breadth of our product and solutions platform and global footprint, which will enable us to accelerate and optimize asset values for customers and become an even stronger partner for OEMs and service providers,” the CEO of Clover Wireless, Dan Perez, stated in the press release.
Lower Costs and More Capabilities
According to ARC’s CEO and president, David Hogan, the acquisition of Clover will aid in bringing down costs for clients.
“We’re pleased to join the Clover family and bring ARC’s deep knowledge of consumer product returns management to expand Clover’s established capabilities. By taking control of the entire returns, recommerce, and recycling reverse supply chain, we can assist our clients in reducing the costs associated with processing returns while also providing them with valuable information on product quality and reasons for return. No other consumer products returns and remanufacturing company in North America can provide the services of the combined Clover-ARC entity. This is a game-changer for the consumer products returns space,” Hogan said.
