Financial details of the transaction were not disclosed.

"This acquisition will allow Dow to combine our company's industry leading materials science technology with Circulus' film recycling expertise to accelerate progress towards our 2030 Transform the Waste goal," said Karen S. Carter, Dow’s president, Packaging & Specialty Plastics.

The combination of Circulus' mechanical film recycling capability with Dow's expertise in materials science and high-performance resins will allow the company to enhance its offerings in applications, such as collation shrink packaging, stretch film, liners and select food packaging, to a wider range of applications in the industrial, consumer, and transportation markets.

"The Circulus team is excited to move forward with Dow in advancing a circular economy. Circulus leverages the best technology available to advance the recycling of plastic packaging waste," said Mike Dulin, CEO of Circulus.

According to Dow, the transaction supports its efforts to transform plastic waste and other forms of alternative feedstocks into 3 million metric tons of circular and renewable solutions annually by 2030. To do this, Dow said that it is building industrial ecosystems to collect, reuse or recycle waste and expand its portfolio to meet rapidly growing demand.