End-to-end solutions provider from design and manufacturing Close the Loop’s (ASX: CLG) wholly owned subsidiary, ISP Tek Services, has entered into a multi-year contract with HP Inc.
Highlights:
- Conversion of existing contract from a rolling one year contract to a thee-year contract
- Exclusivity across a number of product lines
- Revenue share arrangement with HP Inc. across most product lines
ISP Tek Services has entered into an exclusive North American Alternative Recovery Program agreement with HP Inc. The agreement is effective for three years from 1 November 2023 to 31 October 2026. The following products are exclusive to ISP Tek Services:
- Consumer Notebooks;
- Consumer Chrome OS;
- Consumer Monitors;
- Consumer Accessories; and
- Hyper X products including headsets, microphones, keyboards and mice.
ISP Tek Services has entered into a revenue share model with HP Inc. for the products listed above. The revenue share model is expected to improve the profitability, recovery value and cash generated from this agreement for all parties.
All other product lines will continue to be processed with no change to existing “as-is” arrangements. This is in line with the current arrangements with HP Inc. for these product categories.
This is the first agreement of this nature with HP Inc., a pioneer in sustainability, and confirms Close the Loop’s preeminent global reverse logistics expertise. The future success of this program in North America provides Close the Loop with the opportunity to expand ISP Tek Service’s service offering to other jurisdictions in which we operate,” Close the Loop’s CEO, Joe Foster, said:.
“As part of this arrangement there is a requirement that all products collected through this programme, that are deemed to be beyond economic repair are to be dismantled and reused as spare parts, which is in full alignment with our brand promise of zero waste to landfill.”
