Abris Capital Partners (“Abris”), the leading Central European private equity investor, has supported GreenGroup, the largest integrated recycling group in Central Europe, in a €127m fundraising to accelerate its growth and support the surging demand for recycling and sustainable products in the region.
The financing will allow GreenGroup to build on the successful growth already delivered since Abris’ entry and accelerate its plans to scale up its operations across the region, developing unique solutions to recycle previously discarded materials and to penetrate new segments. The funding will allow the group to quadruple its rPET capacity to 28,000 tonnes and almost double its glass and WEEE recycling capacities to reach 150,000 tonnes and 73,000 tonnes respectively. In addition, GreenGroup will expand into electrical motor recycling and residual derived fuel production, as well as investing in various ESG programs including several photovoltaic projects.
The funding was raised through a syndication of banks including UniCredit Bank and Raiffeisen Bank as Coordinating banks, Bookrunners and Mandated Lead Arrangers and Banca Comercială Romana, ING Bank and OTP Bank Romania, acting as Mandated Lead Arrangers. Sustainability coordinators for this transaction were ING Bank and Raiffeisen Bank, while Banca Comercială Romana was Facility and Security Agent. This syndication reinforces the trust of GreenGroup’s partners and their strong support to the group and its transition into a circular economy business.
Adrian Stănculescu, Partner and Head of Abris Romania, commented:
“This financing is an important milestone for GreenGroup, supporting a large capex program to be implemented over the next four years as part of the group’s strategy to become the leading regional circular economy company. Together with GreenGroup, we have developed a proactive strategy to capitalize on the business’s considerable momentum, driven by sustainability targets set out by governments and corporates globally. We plan to advance this ambitious company further in the region and will continue to invest in all divisions, diversifying the product offering and developing new capabilities.”
Abris first invested in GreenGroup in 2016, acquiring majority control of the Romanian integrated recycling group. Since then, the business has expanded rapidly, and now has the capacity to process 280,000 tonnes of waste per year, including PET, electronic equipment, lamps, batteries and glass, at 10 production facilities across Romania, Slovakia and Lithuania.
In addition to its organic growth, GreenGroup has pursued an ambitious M&A strategy across all its divisions in Central Europe. The group expanded at the end of 2019 into Slovakia and Lithuania, where it operates two modern PET recycling facilities, and in 2020 Abris acquired a 100% stake in Eltex Recycling, one of the leading industrial waste management players in Romania, allowing GreenGroup to take one more step towards a circular economy model.
GreenGroup has also recently become the first company to be Gold Standard internationally certified for CO2 reduction from PET recycling in Europe, empowering businesses and individuals to offset their carbon footprint.
Constantin Damov, CEO of GreenGroup, commented:
“This is an important step towards boosting the circular economy in the region, as we are now ready to reinforce our successful model in new markets. Sustainable financing is the key to accelerating circularity and we are grateful to our financial partners for their commitment to playing an active role in sustainability in the region.”
