US compounder Prism raises $40m to advance ELT-based elastomers

Kirkland, Washington – US compounder Prism Worldwide has raised $40 million (€38 million) in series A and series A1 funding to advance its production of sustainable thermoplastic elastomers (TPEs).

The fundraising was co-led by return investors Columbia Pacific Advisors, a Seattle alternative investment firm, and Jim Sinegal, co-founder and former CEO of Costco.

In a statement 19 Nov, Prism said it aimed to use the funds to consolidate operations, make capital investments in technology and equipment, and expand its team. 

In June last year, Prism commercially launched a TPE featuring 50% post-consumer recycled contents from end-of-life tires (ELTs).

The US company's process uses tire rubber as the primary feedstock in the production of polymer intermediates called PTR.

The process chemically and physically converts thermoset rubber into a thermoplastic rubber product.

According to Prism, the processing steps leave "essentially all the valuable polymer, linkages, and carbon black intact."

Most importantly, the process does not break or destroy the sulphur bonds, which according to Prism is "a major breakthrough" for the rubber industry.

The material is then compounded into injection mouldable TPE pellets at the company’s Sodus, New York plant, which was acquired from CRC Polymer Systems Inc. in November 2022.

Notably, Prism claims that its technology makes it possible to integrate a higher concentration of recycled materials to be used in both rubber-based and plastic-based products without conceding product quality.

"Recycling tires and transforming them into sustainable, high-quality, and reliable material opens a wide range of revenue pathways in every market that uses elastomers and plastics," said John Bratrud, portfolio manager, Columbia Pacific Advisors.

The technology has "captured the attention of a significant number of customers in the speciality polymer industry," said Bob Abramowitz, CEO, Prism Worldwide.

The company, he said, has received interest from “a host of companies seeking ways to make their consumer and industrial products more sustainable.”

Prism maintains that the products manufactured from its polymer intermediates are recyclable at the end-of-life stage.