Central European circular economy leader GreenGroup enters the polyolefin recycling market with Lithuanian investment
8 August 2022, Vilnius – Abris Capital Partners (“Abris”), the ESG transformation specialist private equity investor, has supported GreenGroup, the circular economy leader in Central Europe, in acquiring UAB Ecso, a Lithuanian LDPE (Low Density Polyethylene) recycling company.
Part of an ambitious M&A strategy, this acquisition marks GreenGroup’s entry into the polyolefin recycling market and creates the platform for further expansion in this sector across the CEE region. Over the next few years, GreenGroup will invest EUR 150 million to EUR 200 million to further consolidate its position as the largest integrated recycling group in CEE through capex investments and bolt-on acquisitions.
UAB Ecso is GreenGroup’s second add-on in recent weeks, following the acquisition of SIGAD, a Romanian developer of environmental reporting software, in July.
Adrian Stănculescu, Partner and Head of Abris Romania, commented:
“This latest acquisition consolidates GreenGroup’s recycling activities over the past 20 years and is a decisive step in the Group’s strategy to become a key player in polyolefins recycling in the region. Furthermore, it is a strategic investment that reinforces the Group’s commitment to sustainability and to tackling the most pressing environmental issues, such as plastic pollution and reducing carbon footprints.”
Constantin Damov, GreenGroup Chairmen of the Board, commented:
“The Lithuanian model proved to be a local success for closed-loop resourcing of plastic waste, aligned with the circular economy objectives. With this investment, we are positioning the Group as the first line of defense for limiting the environmental impact of single-use plastics – a group fitting both PET and polyolefins. Our objective is to scale this model in the region and other countries as well.”
Abris will continue building GreenGroup into the leading circular economy player in CEE. The Group is ready to address the increasing demand from individuals and industries for sustainable products using recycled inputs, thus contributing to reducing the carbon footprint in the production chain by at least 50% compared with virgin input.
Abris Capital Partners
Abris Capital Partners is the leading ESG transformation specialist private equity fund manager, focused on mid-market opportunities in the major countries of Central Europe. Established in 2007, Abris seeks to identify and partner with the most successful and dynamic mid-market businesses in Central Europe, which can benefit from an input of capital and management expertise at both strategic and operational levels, while driving growth through ESG transformation.
With investment capital of almost €1.3 billion, Abris has obtained financial backing from many leading global investment institutions including corporate and public pension plans, financial institutions, funds of funds and US university endowment funds. Abris has a long-term investment horizon and usually targets transactions in which it is able to acquire a majority or sole ownership position. The Abris advisory business operates using teams based in Warsaw and Bucharest.
GreenGroup is a leading regional integrated recycling group and circular economy enabler, celebrating 20 years of activity in 2022. GreenGroup is a leading European market player in PET recycling and production of polyester staple fiber and a key player in electronics recycling, glass waste recycling and industrial waste management. The company has been majority owned by Abris Capital Partners, one of the leading private equity investors in Central Europe, since 2016.
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