Four New ITAD Sites
Recently, Sprout, a rapidly expanding processor, acquired critical assets from CircleIT, a well-established processor formerly recognized as HiTech Assets. And according to a Sprout official, the incorporation of CircleIT’s advanced platform for monitoring and presenting sustainability metrics to customers played a pivotal role in finalizing the deal.
With a fresh identity, Sprout, formerly known as SMR Worldwide, has expanded its operations to include four electronic waste and IT asset disposition (ITAD) facilities across the United States. These are currently situated in North Carolina, California, Texas, and Massachusetts.
Also, in October of 2023, Sprout embarked on an initiative to acquire the fixed assets and customers from CircleIT, resulting in the dissolution of CircleIT as a business entity. However, specific details regarding the financial arrangement were not made public.
Growth Projected
In a recent interview with E-Scrap News, Tom Allison, the president of Sprout, expressed his excitement regarding the asset acquisition and its potential to greatly impact the firm’s business growth. Describing the moment as a “transformative” one, Allison emphasized the longstanding strategic partnership between both companies and their shared commitment to tracking and highlighting environmental, social, governance (ESG) metrics to their clientele.
With a strong focus on quantifying and reporting, CircleIT has made it a top priority to provide this service to its customers. Originally established in 2002 under the name HiTech Assets, the company underwent a significant transformation in 2016 when it was acquired by a private equity firm. This change in ownership prompted CircleIT to shift its focus towards the refurbishment and reuse of assets.
During that period, the President of CircleIT, Will Cohen, shared with E-Scrap News the introduction of a new service by the company called “Certified ESG.” This service aimed to assist clients in aligning individual ESG goals with used device management activities, which has become a growing focus in the industry. An integral aspect of Certified ESG was the addition of detailed reports to clients, showcasing the measurable effects of their ITAD activities.
An Emphasis on ESG Reporting
When Sprout was considering the deal, Allison was intrigued by CircleIT’s focus on ESG reporting and the annual report that the company offers to its clients caught his attention. “It has key metrics in there that customers will want to see,” Allison noted.
Cohen echoed that the asset acquisition “represents an exciting new chapter.”
“By combining our strengths with Sprout’s, we will be even better positioned to address the growing demand for ESG-aligned ITAD services,” he stated.
In 2023, CircleIT decided to close down its Memphis facility, leaving only one operational facility located in Oklahoma City, Oklahoma. However, Allison disclosed that the Oklahoma City facility will slowly wind down its operations with plans to integrate its processing activities into Sprout’s current facilities.
“Our transformation really has just begun, although we’ve been working on it over the last six to eight months,” Cohen concluded. “We’re turning over our facility as well, enhancing our existing processing infrastructures from being a high-volume recycler, as well as refurbisher, but focusing a lot more on the refurb, a lot more on harvesting parts.”
